{"id":858,"date":"2023-07-04T12:21:37","date_gmt":"2023-07-04T12:21:37","guid":{"rendered":"https:\/\/ladingcargo.com\/blog\/?p=858"},"modified":"2025-03-20T12:26:49","modified_gmt":"2025-03-20T12:26:49","slug":"what-are-third-party-logistics-services","status":"publish","type":"post","link":"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/","title":{"rendered":"What are third-party logistics services? 4 Types you Should Know"},"content":{"rendered":"<p><span style=\"font-weight: 400\">&#8220;Third-party logistics services&#8221; or &#8220;3PL&#8221; refers to various agreements in the business world, such as those related to the storage or transport of goods. It is crucial for businesses as it allows them to scale space, labor, and transportation based on inventory, ease seasonal transitions, and aid growth in new markets. It also helps businesses adapt to industry fluctuations and facilitates expansion into new regions.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A 3rd party logistics provider offers procurement and fulfillment services. These services include <a href=\"https:\/\/ladingcargo.com\/blog\/part-1-top-7-warehousing-solutions-in-texas\/\">warehousing<\/a> and transport on behalf of its clients. Supply chain management services can be provided by one company or bundled for the entire system.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Types_of_third-party_logistics_services\" >Types of third-party logistics services<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Standard_3PL_Provider\" >Standard 3PL Provider<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Service_Developer\" >Service Developer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Customer_Adapter\" >Customer Adapter<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Customer_Developer\" >Customer Developer<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Benefits_of_3PL\" >Benefits of 3PL<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Cost_Saving\" >Cost Saving<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Access_to_Expertise\" >Access to Expertise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Focus_on_Core_Competencies\" >Focus on Core Competencies<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#The_Bottom_Line\" >The Bottom Line<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#What_does_a_3PL_provider_do\" >What does a 3PL provider do?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#How_does_a_3PL_work\" >How does a 3PL work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#What_are_the_services_a_3PL_provides\" >What are the services a 3PL provides?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#Why_do_companies_choose_to_work_with_a_3PL_provider\" >Why do companies choose to work with a 3PL provider?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/#What_are_the_benefits_of_using_3PL_services\" >What are the benefits of using 3PL services?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_third-party_logistics_services\"><\/span><strong>Types of third-party logistics services<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Standard_3PL_Provider\"><\/span><strong>Standard 3PL Provider<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Standard third-party logistics service providers take care of things like sending, storing, and fulfilling orders. These service providers take care of logistics basics like running a business.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Service_Developer\"><\/span><strong>Service Developer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Developers of 3PL services offer storage and transportation, along with additional IT infrastructure and administration.\u00a0 Customers are provided with value-added services. These services include security, shipment tracking, and compliance monitoring.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Customer_Adapter\"><\/span><strong>Customer Adapter<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">This kind of 3PL company takes care of the whole transportation process for their client, from placing an order to negotiating with carriers and keeping track of prices.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Clients can use tools like a transportation management system to see how things are going and make changes to packages as needed without getting their hands dirty.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Customer_Developer\"><\/span><strong>Customer Developer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">There aren&#8217;t that many 3PLs, but the ones that are out there tend to be pretty big. This is because 3PL customer developers act as their clients&#8217; de facto logistics teams, taking over all of the client&#8217;s <a href=\"https:\/\/ladingcargo.com\/blog\/4-steps-to-find-the-best-logistics-services-in-texas\/\">logistics<\/a> tasks when asked to do so. It may be very expensive to hire a 3PL customer developer because &#8220;running the show&#8221; for the client takes a lot of time, work, and responsibility.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_3PL\"><\/span><strong>Benefits of 3PL<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Cost_Saving\"><\/span><strong>Cost Saving<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Working with a 3PL company could help you save costs in a number of ways. Because they have more contacts and a wider network in the logistics business.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Access_to_Expertise\"><\/span><strong>Access to Expertise<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Access to expertise means having access to the information and experience of a 3rd party logistics services provider. In today&#8217;s complicated global market, it may be hard for companies to know everything they need to know about all the skills and places.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Focus_on_Core_Competencies\"><\/span><strong>Focus on Core Competencies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Businesses might want to outsource their services so that they can focus on what they do best. So, the company may be able to put more energy and resources into its most important tasks.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Bottom_Line\"><\/span><strong>The Bottom Line<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">The bottom line is 3PL (Third-Party Logistics) is a partner or service that helps ecommerce merchants manage their shipping operations. A 3pl warehouse stores raw materials or manufactured goods before distribution. Other than this they handle inventory management, order fulfillment, shipping coordination, retail distribution, exchanges, and returns.<\/span><\/p>\n<p><strong>Also Read, <a href=\"https:\/\/ladingcargo.com\/blog\/do-drop-shippers-deal-with-your-customers-directly\/\">Do Drop Shippers Deal with Your Customers Directly?<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><b>FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_does_a_3PL_provider_do\"><\/span><b>What does a 3PL provider do?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Third-party logistics companies (3PL) offer their clients distribution, storage, transportation, and order delivery. Customers in this group often hire a 3PL company to handle their service management needs.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_does_a_3PL_work\"><\/span><b>How does a 3PL work?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Third-party logistics service providers, or 3PLs, take care of routine chores like managing inventory, taking care of orders, transporting goods, and storing them so that businesses can focus on what they do best. This makes it easier to get work done at a fair price.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_services_a_3PL_provides\"><\/span><b>What are the services a 3PL provides?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">3PL provider is a contract business that helps other companies with things like distributing, storing, moving, and filling orders. They watch over the whole duration of service, from start to finish, to make sure their clients are completely happy.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_do_companies_choose_to_work_with_a_3PL_provider\"><\/span><b>Why do companies choose to work with a 3PL provider?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">Companies choose 3PL providers for scalability, inventory management, and ease of transition between seasons and industry fluctuations. They also aid growth in new markets and regions, enabling businesses to adapt to seasonal changes and industry fluctuations.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_using_3PL_services\"><\/span><b>What are the benefits of using 3PL services?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400\">3PL services offer six key benefits in supply chain management: cost savings, access to expertise, focus on core competencies, flexibility, scalability, business growth, market expansion, and customer satisfaction. These benefits enable business growth, market expansion, and improved customer satisfaction.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Third-party logistics services&#8221; or &#8220;3PL&#8221; refers to various agreements in the business world, such as those related to the storage or transport of goods. It is crucial for businesses as&#8230;<\/p>\n","protected":false},"author":1,"featured_media":859,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[130],"tags":[],"class_list":["post-858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-logistics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What are third-party logistics services? 4 Types you Should Know<\/title>\n<meta name=\"description\" content=\"Third-party logistics services involve outsourcing procurement and fulfillment activities, and managing procurement and fulfillment aspects.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ladingcargo.com\/blog\/what-are-third-party-logistics-services\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What are third-party logistics services? 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