3PL

3PL (Third-Party Logistics) is the outsourcing of logistics operations — warehousing, inventory management, fulfilment, transportation, customs clearance — to a specialist provider. The "third party" is between the manufacturer/shipper (first party) and the customer/consignee (second party).

3PL services range from basic storage and transportation through fulfilment (pick-pack-ship for e-commerce), value-added services (kitting, labelling, repackaging), customs brokerage, returns management, and cross-docking. The 3PL operates infrastructure (warehouses, trucks) and systems (WMS, TMS) on behalf of multiple customers, achieving scale that smaller shippers couldn't alone.

Adjacent categories: 4PL (Fourth-Party Logistics) — orchestrates an entire supply chain without owning physical assets; 5PL — adds digital orchestration and analytics layer on top.