What is a 3PL?

3PL (Third-Party Logistics) is a business model where a company outsources elements of its distribution, warehousing, and fulfillment services to a specialized external provider. A 3PL provider integrates into a company's supply chain to manage physical inventory, order processing, and shipping, allowing the business to scale without investing in private warehouse infrastructure. Key 3PL functions include inbound freight, inventory management, pick-and-pack fulfillment, and last-mile delivery.