Nathan Dube

By: Nathan Dube on May 18th, 2021

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3PL: What Is Third-Party Logistics?

Supply Chain Services/ Contract Packaging | Fulfillment | Warehousing

Are you tired of managing shipping and receiving for your company? Do you wish that you did not have to deal with product returns to unhappy customers? What would you be willing to do if you never had to package another product in your life?


Does the thought of inventory control and labor force management keep you up at night?


If this sounds like you, then chances are, you might benefit from a third-party logistics partner. But, what exactly is third-party logistics?


Industrial Packaging has spent decades working in 3PL. Third-party logistics is like a second home for us. We know 3PL like the back of our hands, and we have provided these services to many businesses just like yours.


In this article, we will introduce you to third-party logistics and define this term. We will also discuss other elements associated with 3PL in the context of contract packaging. With the information in this article, you will be able to decide if using a 3PL partner is a good idea for your business.


third-party logistics


What Is Third-Party Logistics (3PL)?


Third-party logistics is a type of contract packaging service. These services are offered by contract packaging companies (also known as co-packers). 3PL (or third-party logistics) is the outsourcing of logistics processes. This is commonly done for eCommerce businesses.


Third-party logistics may include the outsourcing of inventory control, storage, and fulfillment services. 3PL providers give companies the ability to focus on their core capabilities.


3PL companies take all logistics responsibilities off the plates of their customers. This allows their clients to improve upon other elements of their business.


3PL providers prevent their clients from being bogged down by responsibilities such as warehousing, labor management, inventory management, and the other related aspects of third-party logistics.


To simplify, third-party logistics is the complete outsourcing of a company's supply chain. All of the logistics are managed by a contract packaging company.


third-party logistics deal


Who Should Outsource Their Supply Chain To A 3PL Provider?


3PL has become extremely popular with eCommerce companies. But, that is not the only type of company that may find value using a third-party logistics partner.


Any business that wants to outsource their shipping, receiving, storage, picking, packing, returns, and other related elements of their supply chain would be a good fit for partnering with a contract packaging company. The reason a company would want to do this is to save time and money.


Where Can You Learn More About Third-Party Logistics And Contract Packaging?


Now that you know what 3PL is, are you curious to learn more about this topic? Would you like to learn how outsourcing your logistics and fulfillment responsibilities to a contract packaging company can help your business?


If you answered yes to any of the questions above, you might want to consider reading Contract Packaging: Beginner's Guide To Third-Party Logistics. This article expands upon the 3PL information above and helps you to understand 3PL in the context of contract packaging.


With this information, you can decide if outsourcing your logistics, fulfillment, and related packaging needs to a contract packaging company makes sense for your business.


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About Nathan Dube

As the Digital Marketing Specialist at Industrial Packaging, I am honored to create content for such a phenomenal company and work with one of the greatest teams in the Packaging Industry. Whether creating a video, writing blog posts or generating other pieces of content and multimedia, I am always excited to help educate and inspire our prospects and clients to reach their highest potential in regards to their packaging processes and needs.