What is 3PL in logistics?

A third party logistics (3PL) company provides multiple logistic services. These services are integrated thus multimodal in nature. A3PL would include transportation, warehousing, cross-docking, inventory management, packaging and freight forwarding.

1. A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or "third party") logistics services for part, or all of their supply chain management functions.

Third party logistics providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers' needs based on market conditions and the demands and delivery service requirements for their products and materials.

3PL or third party logistics is a firm which a customer can depend on when he need a multi nodal logistics operation. in a3pl firm the outsources all the logistic operation to different firm and coordinate with all these firms for smooth operation of the logistic activities

3PL in SCM is a party that is not directly upstream (Manufacturer of subcomponents or supplier of raw materials) nor directly downstream (The consumers) in the supply chain and provides multimodal multifaceted logistics services such as transporting, warehousing, forwarding, distribution, clearamce, inventory management, cross-docking, packaging, sales or in other words, any activity not handled by the first party (You as manufacturer or value adder) and the secondary parties (Supplier and Consumer)