What is 3PL (Third-Party Logistics)? The Ultimate Guide

3PL, also known as third-party logistics, refers to a company that facilitates product deliveries for sellers rather than buying or selling products themselves.

It allows businesses to outsource logistics operations—such as warehousing, inventory management, order fulfillment, shipping, and returns processing—to specialized providers. This streamlines operations, reduces costs, and improves efficiency, allowing businesses to focus on core competencies like product development and customer experience. 3PL is an integral part of today’s supply chain management, particularly in e-commerce, retail, and manufacturing. A Statista report states that the 3PL industry may exceed 13.7 trillion U.S. dollars by 2027, further highlighting its significance.

Understanding 3PL is key for businesses looking to stay competitive in an evolving market while maintaining agility, cost efficiency, and customer satisfaction.

3PL Meaning

3PL is a widely popular service that allows companies to outsource their logistics to a third-party logistics provider. 3PL companies are neither the buyer nor the seller — they simply partner with the seller and facilitate smooth product deliveries to the buyers’ doorsteps.

For example, a smartphone manufacturer might partner with a 3PL company to store, manage, and deliver their products to customers. The 3PL provider handles tasks like warehousing, transportation, and delivery, allowing the manufacturer to focus on production and sales. This arrangement benefits the manufacturer through cost savings and logistics expertise, and ensures efficient delivery for the customer.

How Does 3PL Work?

3PL companies have gained prominence as one of the most important parts of the e-commerce industry. This is because their operations are highly sophisticated due to integrated logistics services, advanced technology and automation, scalability and flexibility, global reach and local expertise, inventory management software, and more, making them crucial to the success of an e-commerce company.

Third-party logistics (3PL) companies have extended their services beyond just managing transportation and distribution functions; they also delve into areas such as procurement, focusing on various segments of a business. These companies encompass a wide range of services, including product sourcing, freight shipping, and more, providing comprehensive solutions that address multiple aspects of a company’s supply chain and logistics needs.

If everything in your business is going well but you are struggling with supply chain management, you should start thinking about working with a 3PL company. But before you pick a 3PL logistics company, you need to decide what type of service suits your business and addresses your current issues.

The Most Common 3PL Services Include:

• Transportation
• Distribution
• Shipping logistics
• Receiving products
• Warehousing
• Product storage

If you are running a huge business, then you will need a full-service end-to-end third-party logistics provider. On the other hand, a small business will likely only require one or two of the services mentioned above.

The primary service offering of a 3PL provider is supply chain logistics. Generally, third-party logistics providers are integrated into the warehousing, inventory distribution, and transportation processes of a company making them a great option to quickly scale your business or meet a sudden increase in demand..

What is 3PL Inventory Management Software?

3PL inventory management software is a specialized digital tool that helps third-party logistics companies keep track of inventory, streamline operations, and improve efficiency. To ensure that goods are handled efficiently and accurately, the software brings together key inventory functions including:

• Tracking stock levels
• Managing order fulfillment 
• Optimizing warehouse storage 

Inventory management softwarehelps businesses and their 3PL providers stay connected by syncing inventory data across all systems. It integrates with e-commerce platforms, point-of-sale systems, and other business software to ensure real-time accuracy and seamless operations.

3PL vs. 4PL

A Fourth-Party Logistics (4PL) provider represents an evolution in supply chain management and logistics. Unlike a Third-Party Logistics (3PL) provider, which typically focuses on singular aspects of a company’s distribution and fulfillment services, a 4PL provider offers a more comprehensive set of supply chain services.

4PL refers to further outsourcing the logistics management to the external organization, reducing your workload. The 4PL provider will oversee the entire logistics process, which also includes processes like return merchandise authorization (RMA). UPS 4PL services, Amazon FBA, and Accenture 4PL services are some of the market leaders in this category.

Typically, 4PL providers command considerable expertise over the end-to-end execution, which helps you project yourself as a customer-focused brand.

3PL vs. Dropshipping vs. Freight Forwarding

3PLs, dropshipping, and freight forwarding businesses offer a unique approach to handling, storing, and shipping products. Each model has differentiating features.

3PL

3PL providers are companies that offer outsourced logistics services to other businesses, standing as a critical bridge in the supply chain. In contrast to other methods like dropshipping or freight forwarding, 3PLs have a broader scope. They handle warehousing, distribution, fulfillment, and transportation for retailers or manufacturers that own the inventory.

Dropshipping

In dropshipping, retailers do not own or store inventory. Instead, when a product is sold, the retailer transfers the order details directly to a supplier or manufacturer, who then ships the product to the end customer. This model reduces financial risk for the retailer, as there’s minimal upfront investment in inventory. 

Freight Forwarding

Freight forwarders specialize in the storage and shipment of merchandise, typically focusing on the international transport of goods. While they share some similarities with 3PLs in handling shipping, they don’t provide comprehensive warehousing or own the inventory. Their role is coordinating between shippers and transportation services. 

They manage documentation, work with carriers, and might provide temporary storage solutions. Compared to dropshipping, freight forwarders don’t directly interact with the end consumer and have a broader responsibility, ensuring that goods navigate the complexities of international shipping.

Types of 3PLs

Businesses today are turning to third-party logistics (3PL) providers for warehouse management, inventory management, and other logistics solutions. By outsourcing these tasks, they can focus on their core business while improving efficiency and customer satisfaction.

Here are the most common types of 3PL companies and contracts:

• Standard 3PL providers: These companies handle basic logistics services like warehousing, distribution, and transportation. They are ideal for businesses with straightforward shipping and storage needs.
• 3PL service developers: In addition to standard logistics, these providers offer advanced services such as shipment tracking, network analysis, and detailed reporting. They often use sophisticated IT systems to enhance efficiency.
• 3PL companies with forwarder capacities: These companies not only manage logistics but also act as freight forwarders, consolidating shipments, handling international freight, and managing customs clearance.
• 3PL companies with financing options: Some 3PLs offer financial support, such as cargo insurance, payment processing, and inventory financing, helping businesses manage both logistics and cash flow.
• 3PL customer adapters: These providers take over and optimize a company’s existing logistics operations without adding new infrastructure, essentially acting as an outsourced logistics department.
• 3PL customer developers: These companies form deep, strategic partnerships with businesses, fully managing their logistics operations and tailoring services to meet specific needs.

Signs your company needs or is ready for a 3PL

As your business grows, logistics can become a bottleneck—delays increase, costs rise, and scaling fulfillment becomes overwhelming. A third-party logistics (3PL) provider can help, but how do you know if it’s the right time to outsource? Here are key signs your company might be ready for a 3PL.

1. Your business is growing, but logistics is holding you back 

At the start, handling fulfillment in-house is manageable. But as your business scales, shipping, warehousing, and order accuracy become more difficult to manage efficiently.

Signs you’re struggling with growth:

• Your fulfillment center or storage space is maxed out.
• Delays in processing and shipping orders are increasing.
• You just landed a deal with a big box retailer that will be ordering in large quantities.
• You’re spending more time solving logistics issues than growing your business.

How a 3PL helps:

• Provides scalable warehousing and fulfillment without major infrastructure investments.
• Automates order processing, improving efficiency and accuracy.
• Offers real-time inventory visibility to prevent stockouts and delays.

2. Flexibility and scalability of 3PL solutions

As businesses grow, their logistics needs evolve. One of the key advantages of partnering with a 3PL provider is the ability to scale operations up or down based on demand. Whether dealing with seasonal sales fluctuations or long-term business expansion, 3PLs provide on-demand warehousing, workforce adjustments, and fulfillment solutions that adapt to changing needs.

Some key ways 3PLs offer flexibility and scalability include:

• On-demand storage & fulfillment: Pay only for the warehouse space and services used, reducing overhead costs.
• Hybrid fulfillment models: Businesses can combine in-house logistics with 3PL services, keeping control over certain operations while outsourcing overflow.
• Peak season management: 3PLs allow companies to ramp up fulfillment during high-demand periods (such as holidays or sales events) without hiring extra staff or investing in infrastructure.
• Market expansion support: With multiple fulfillment centers, 3PLs enable businesses to enter new markets without major logistical investments.

This adaptability ensures that businesses can scale seamlessly without compromising delivery times, inventory accuracy, or customer satisfaction.

3. Your business has seasonal demand spikes 

If your sales fluctuate due to holidays, promotions, or peak shopping seasons, handling inventory surges can be overwhelming.

Challenges of seasonal demand:

• Overstocking during slow periods leads to high storage costs.
• Underestimating demand results in stockouts and missed sales.
• Hiring seasonal staff increases expenses and management complexity.

How a 3PL helps:

• Flexible storage solutions—only pay for space when you need it.
• On-demand staffing and automation ensure smooth peak-season operations.
• Hybrid fulfillment models let you manage part of the supply chain while outsourcing overflow.

4. Rising fulfillment costs are cutting into profits 

If logistics costs—warehousing, labor, shipping, and packaging—are increasing faster than revenue, it’s time to reassess your fulfillment strategy.

Common cost issues:

• High storage fees for excess inventory.
• Rising shipping rates and inefficient freight management.
• Hiring more staff just to keep up with demand.

How a 3PL helps:

• Optimizes warehouse space and labor usage to cut costs.
• Leverages bulk shipping discounts to reduce freight expenses.
• Uses advanced inventory management to reduce holding costs and avoid excess stock.

5. You want to expand to new markets

Shipping beyond your current region—or internationally—can be expensive and complex.

Barriers to expansion:

• Long shipping times for customers outside your fulfillment area.
• High costs for national and international delivery.
• Lack of infrastructure to support global orders.

How a 3PL helps:

• Strategically located warehouses store inventory closer to customers, cutting transit times.
• Cross-border logistics expertise simplifies customs, duties, and international shipping.
• Freight optimization reduces costs on larger or long-distance shipments.

6. Logistics is distracting you from core business growth

Are you spending too much time dealing with shipping, tracking, and inventory issues instead of focusing on product development, marketing, and sales?

Signs logistics is taking over:

• You or your team are constantly troubleshooting fulfillment issues.
• Customer complaints about delayed or incorrect orders are increasing.
• You’re overwhelmed managing warehouse staff, storage, and inventory tracking.

How a 3PL helps:

• Takes over logistics operations so you can focus on business growth.
• Uses technology-driven fulfillment solutions to improve accuracy and efficiency.
• Reduces fulfillment errors, leading to better customer satisfaction.

Benefits of using a 3PL

1. Increased efficiency and cost savings

Managing logistics in-house can be time-consuming and expensive. A 3PL improves supply chain efficiency by:

• Reducing labor, warehousing, and shipping costs through economies of scale.
• Eliminating the need for major capital investments in logistics infrastructure.
• Enhancing order accuracy and fulfillment speed, reducing costly errors.

2. Access to industry expertise and advanced technology

3PLs bring specialized knowledge and tools to optimize logistics operations:

• Expertise in freight management, customs regulations, and compliance.
• Route optimization for cost-effective and faster deliveries.
• Integration with inventory management software for real-time stock tracking.

By leveraging a 3PL’s experience, businesses can avoid costly supply chain mistakes and improve operational efficiency.

3. Expanded market reach and faster shipping

A 3PL provides access to established distribution networks, allowing businesses to:

• Store inventory in multiple locations to reduce shipping times.
• Benefit from discounted shipping rates through bulk carrier partnerships.
• Improve order fulfillment speed, leading to higher customer satisfaction.

This is particularly valuable for e-commerce businesses aiming to offer rapid delivery options.

4. Scalability to match business growth

A 3PL offers flexible logistics solutions that adapt as a business expands:

• Supports seasonal sales spikes without requiring additional in-house resources.
• Provides hybrid fulfillment models, allowing businesses to keep some logistics in-house while outsourcing overflow.
• Enables expansion into new markets without the need for warehousing or transportation investments.

5. Improved customer experience and brand reputation

Reliable logistics directly impact customer satisfaction. A 3PL helps businesses:

• Ensure on-time deliveries and accurate order fulfillment.
• Manage returns and reverse logistics efficiently.
• Reduce the risk of damaged shipments through optimized packaging and handling.

These factors contribute to stronger customer loyalty and repeat business.

6. Enhanced inventory control and warehouse management

Managing inventory across multiple locations can be complex. A 3PL:

• Uses real-time tracking systems to monitor stock levels.
• Reduces excess inventory costs through demand forecasting.
• Optimizes warehouse space for faster order processing and fulfillment.

7. Focus on core business operations

By outsourcing logistics, businesses can:

• Spend more time on marketing, sales, and product development.
• Avoid the complexities of managing warehouses, fleet operations, and supply chain logistics.
• Adapt to changing business needs without being tied down by logistics challenges.

A 3PL allows companies to focus on strategic growth while logistics experts handle fulfillment.

3PL Shortcomings: Challenges to Consider

While outsourcing logistics to a 3PL can bring numerous advantages, there are certain drawbacks that businesses should carefully evaluate. Some of the most common concerns include:

1. Loss of control over logistics

Outsourcing fulfillment means businesses must rely on a third-party provider for critical operations.

• Branding, packaging, and customer experience depend on the 3PL’s processes.
• Delays or fulfillment errors by the 3PL can impact a company’s reputation.

How to mitigate this:

• Choose a 3PL with strong service-level agreements (SLAs) and a proven track record.
• Utilize real-time tracking and reporting tools for better visibility into operations.

2. Upfront costs and other fees

Although a 3PL reduces costs over time, there may be initial expenses, including:

• Setup fees, technology integration, and onboarding costs.
• Monthly storage, fulfillment, and service fees that can add up.

How to mitigate this:

• Look for flexible 3PL partners that offer scalable pricing without long-term contracts.
• Compare providers to ensure competitive rates and transparent cost structures.

3. Potential for unexpected cost increases

Some 3PLs adjust pricing based on market conditions, such as:

• Carrier rate fluctuations and fuel price increases.
• Changes in service fees based on order volume or peak seasons.

How to mitigate this:

• Review contracts for transparent pricing models and potential cost escalations.
• Consider working with multiple 3PL providers to maintain flexibility.

4. Not all 3PLs specialize in every industry

Businesses in certain industries, such as pharmaceuticals, food and beverage, or hazardous materials, may require specialized logistics.

• A generalist 3PL may lack proper compliance certifications for regulated industries.
• Custom packaging, temperature control, or specialized handling may not be available.

How to mitigate this:

• Choose a 3PL with experience in your specific industry.
• Verify that the provider meets all regulatory and safety requirements.

By addressing these potential shortcomings upfront, businesses can ensure they select a 3PL partner that aligns with their needs and operational goals.

Industries That Frequently Use 3PLs

3PL providers play a crucial role across multiple industries, offering tailored solutions to meet unique logistics challenges. Businesses in sectors like e-commerce, retail, manufacturing, and consumer goods rely on 3PLs to optimize inventory management, streamline order fulfillment, and expand market reach.

E-commerce and retail

With growing consumer demand for fast, reliable delivery, e-commerce and retail businesses require scalable logistics solutions to manage high order volumes and frequent returns.

• Common use cases: Online marketplaces, fashion and apparel brands, consumer electronics.
• How 3PLs help:
  • Strategically located warehouses for faster shipping.
  • Reverse logistics management to handle frequent returns.
  • Multi-channel fulfillment to support online and in-store sales.

Food and beverage

Perishable products require temperature-controlled storage, strict food safety compliance, and efficient distribution to prevent spoilage.

• Common cse cases: Grocery delivery services, packaged foods, beverage manufacturers.
• How 3PLs help:
  • Cold chain logistics for refrigerated and frozen products.
  • Inventory tracking to ensure product freshness.
  • Regulatory compliance with food safety standards.

Healthcare and pharmaceuticals

The healthcare industry depends on secure, compliant, and temperature-controlled logistics to transport high-value, sensitive products.

• Common use cases: Pharmaceutical companies, medical device manufacturers, biotechnology firms.
• How 3PLs help:
  • Cold chain logistics to protect temperature-sensitive medicines.
  • Secure storage and tracking for regulatory compliance.
  • Fast, reliable delivery for time-sensitive shipments.

Consumer Packaged Goods (CPG)

High-volume inventory, frequent restocking needs, and diverse distribution channels make 3PLs an essential partner in the CPG sector.

• Common use cases: Personal care products, cleaning supplies, household goods.
• How 3PLs help:
  • Inventory optimization to prevent stock shortages.
  • Retail compliance to meet store delivery requirements.
  • Omnichannel distribution to reach both retail and direct-to-consumer markets.

Automotive

With complex supply chains and just-in-time (JIT) inventory models, automotive companies require highly coordinated logistics.

• Common use cases: Auto parts suppliers, vehicle manufacturers, aftermarket retailers.
• How 3PLs help:
  • Freight brokerage for cost-effective transportation of heavy parts.
  • JIT delivery to support assembly lines.
  • Secure storage for high-value automotive components.

Technology and electronics

High-value goods require secure, efficient logistics solutions with capabilities like kitting and rapid distribution.

• Common use cases: Mobile devices, computer hardware, consumer electronics.
• How 3PLs help:
  • Custom packaging and kitting for product bundles.
  • Real-time tracking for theft prevention and security.
  • Global distribution support for international markets.

Fashion and apparel

Frequent product launches, seasonal inventory fluctuations, and high return rates make apparel brands prime candidates for 3PL support.

• Common use cases: Clothing brands, footwear companies, luxury goods.
• How 3PLs help:
  • Flexible warehousing to handle seasonal demand spikes.
  • Automated returns management for a smoother customer experience.
  • Rapid order fulfillment to keep up with changing fashion trends.

Furniture and home goods

Bulky, heavy items require specialized handling and transportation, as well as white-glove delivery services for assembly and installation.

• Common use cases: Home décor brands, large appliances, custom furniture makers.
• How 3PLs help:
  • Freight and last-mile delivery for oversized items.
  • White-glove services for installation and setup.
  • Custom packaging solutions to protect fragile products.

Industrial and construction materials

Industrial logistics require secure storage, bulk shipping solutions, and project-based distribution.

• Common use cases: Tool and equipment suppliers, raw materials providers, construction firms.
• How 3PLs help:
  • Freight coordination for heavy and oversized shipments.
  • Just-in-time delivery for large-scale construction projects.
  • Warehouse storage solutions for specialized equipment.

Energy and utilities

The movement of large, heavy equipment often requires special permits, logistics coordination, and precise timing.

• Common use cases: Solar panel manufacturers, oil and gas suppliers, energy infrastructure companies.
• How 3PLs help:
  • Specialized freight services for oversized loads.
  • Logistics planning for remote locations.
  • Regulatory compliance for hazardous material transport.

What to look for in a good 3PL & how to find the right 3PL for your business

Choosing the right third-party logistics (3PL) provider is a crucial decision that can directly impact efficiency, scalability, and customer satisfaction. A well-matched 3PL partner will streamline operations, reduce logistics costs, and support business growth. However, with numerous providers available, businesses need to carefully evaluate their options based on key operational and strategic factors.

What to look for in a good 3PL

An effective 3PL should offer scalability, technology integration, and a well-structured logistics network. Below are the essential features to consider when evaluating a provider.

1. Strategic warehouse locations

A 3PL’s warehouse network and fulfillment centers should be positioned close to key markets to reduce shipping costs and delivery times. Having inventory stored in multiple regional hubs ensures faster order fulfillment and improves overall supply chain efficiency.

• Why it matters: Reducing transit times enhances customer satisfaction.
• What to look for: Providers with nationwide or global warehouse coverage that align with your target markets.

2. Advanced technology and system integration

A modern 3PL should use AI-driven logistics, inventory management software (IMS), and warehouse management systems (WMS) to optimize operations. Seamless integration with your e-commerce platform, IMS, ERP, or order management system is also crucial.

• Why it matters: Real-time inventory tracking prevents stockouts and improves order accuracy.
• What to look for: A 3PL that offers automated fulfillment, real-time tracking, and API integrations with your existing systems.

3. Scalable capacity for growth

Your logistics needs will evolve as your business grows. A good 3PL partner should be able to handle seasonal demand spikes, increased order volumes, and market expansion without operational disruptions.

• Why it matters: A scalable 3PL eliminates the need to switch providers as your business grows.
• What to look for: Providers with flexible warehousing, workforce scalability, and peak-season support.

4. Efficient returns management (reverse logistics)

Handling product returns efficiently is essential for customer satisfaction and cost control. A 3PL should have a streamlined returns processing system to minimize losses and restock items quickly.

• Why it matters: An efficient reverse logistics process can reduce return-related costs.
• What to look for: A provider with automated return tracking, inspection services, and restocking capabilities.

5. Kitting and custom packaging services

Some businesses require product bundling (kitting) or custom packaging for branding consistency. A 3PL that offers these services enhances product presentation and improves customer experience.

• Why it matters: Helps differentiate your brand through custom packaging and efficient assembly.
• What to look for: Providers with in-house kitting, branding solutions, and specialized packaging options.

6. Performance monitoring and KPIs

A reliable 3PL should provide transparent reporting on key performance indicators (KPIs) such as on-time delivery rates, order accuracy, inventory turnover, and warehouse efficiency.

• Why it matters: Monitoring KPIs ensures your 3PL is meeting service-level agreements (SLAs).
• What to look for: A provider that offers real-time performance dashboards and detailed logistics reports.

How to find the right 3PL for your business

Once you know what to look for in a 3PL, the next step is finding a provider that aligns with your operational needs and growth strategy. Here’s how to make an informed choice:

1. Assess your logistics needs

Start by identifying the challenges you want to solve with a 3PL. Common considerations include:

• Are you struggling with order fulfillment speed?
• Do you need better inventory management?
• Are shipping costs too high?
• Is your business scaling faster than your in-house logistics can handle?

Clarifying your requirements will help you prioritize which 3PL features matter most to your business.

2. Research And compare providers

Not all 3PLs offer the same level of service. Take the time to research and compare:

• Industry experience – Does the provider specialize in your sector?
• Service offerings – Do they provide warehousing, fulfillment, shipping, and returns management?
• Technology stack – Can they integrate with your existing systems?
• Customer reviews – What do other businesses say about their reliability and service quality?

Shortlist providers that align with your business model and offer solutions that fit your logistics challenges.

3. Evaluate their fulfillment centers

A site visit or virtual tour of a 3PL’s fulfillment center can provide insights into:

• Warehouse organization and efficiency.
• Staffing and automation levels.
• Security and inventory tracking capabilities.

Touring their facilities ensures they have the infrastructure and processes needed to handle your products effectively.

4. Define KPIs and service expectations

Before committing to a 3PL, establish key performance indicators (KPIs) and service-level agreements (SLAs) that align with your business goals. Important KPIs include:

• Order accuracy rate – Ensuring shipments are error-free.
• On-time delivery rate – Tracking shipping performance.
• Return processing time – Measuring efficiency in handling returns.
• Warehouse accuracy – Ensuring proper inventory management.

Clear KPIs help hold the 3PL accountable and allow continuous performance monitoring.

5. Verify pricing and scalability options

Understand the full pricing structure before signing a contract. Some 3PLs charge based on:

• Storage space usage.
• Order fulfillment volume.
• Additional services (returns, custom packaging, expedited shipping, etc.).

Look for a transparent pricing model that allows for scalability without hidden fees.

6. Check customer support and communication

A responsive and reliable customer support team is essential for smooth logistics management. Evaluate:

• How quickly they resolve issues.
• Their communication channels (phone, email, live chat, dedicated account manager, etc.).
• Their ability to provide real-time shipment updates and troubleshooting.

A good 3PL should be proactive, transparent, and easy to reach when you need assistance.

Frequently Asked Questions

Whether you’re new to the logistics world or looking to deepen your understanding, these answers to common questions might shed some light.

What is an example of a 3PL company?

3PL companies offer various logistics and supply chain services to other businesses. One notable example is DHL Supply Chain, a division of the larger DHL company. 

DHL Supply Chain provides solutions in warehousing, distribution, and transportation, making it an all-encompassing 3PL provider. They serve multiple industries, ranging from consumer sectors to specialized areas such as life sciences, ensuring goods move seamlessly and efficiently throughout the supply chain.

Is Amazon a 3PL company?

While most know Amazon for its e-commerce platform, it also operates as a 3PL through its Fulfillment by Amazon (FBA) service. FBA allows sellers to store their products in Amazon’s fulfillment centers, where Amazon handles storage, packaging, and shipping to customers, making it a 3PL service within the broader Amazon ecosystem.

Is FedEx considered a 3PL?

FedEx offers 3PL services through its subsidiary, FedEx Supply Chain. While most know FedEx for its express shipping services, FedEx Supply Chain provides comprehensive logistics solutions, including warehousing, distribution, and transportation management.

What are the three types of 3PLs?

The three types of 3PLs are transaction-based 3PLs, tactical-based 3PLs and strategic-based 3PLs.

• Transaction-based 3PLs: These 3PLs offer standard logistics services on a per-transaction basis without needing long-term contracts. Their services might include transportation, warehousing, and freight forwarding, catering to businesses that require sporadic or infrequent logistics support.
• Tactical-based 3PLs: Tactical 3PLs provide more specialized services and usually engage in short- to medium-term contracts (a few months to three years). They focus on specific aspects of the supply chain, such as warehousing or transportation, but offer a deeper level of service, often integrating their systems with their clients for better coordination.
• Strategic-based 3PLs: These are the most comprehensive 3PL providers. They often form long-term partnerships with businesses and offer end-to-end supply chain solutions. 

Connect with 3PL experts

Embarking on a journey with 3PL can be transformative for your business, but like any significant venture, it requires expertise to navigate effectively. Fortunately, you don’t have to do it alone. 

Cin7 offers an in-house team of 3PL specialists ready to guide you. Whether you’re starting from scratch or aiming to optimize your existing setup, our experts stand ready to ensure a seamless integration. Trust in Cin7’s seasoned professionals to set up and streamline your 3PL operations with ease.

Start a 14-day free trial of Cin7 today.