---
title: "3PL (Third-Party Logistics)"
description: "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."
language: en
canonical: https://www.flexport.com/glossary/3pl-third-party-logistics/
lifecycle: live
dateModified: 2026-10-12T16:18:03Z
topics:
  - "Fulfillment"
---

# 3PL (Third-Party Logistics)

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.

## 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.

## How does a 3PL work with your business?

You send inventory to the 3PL's warehouse, and the provider receives, stores, and ships it as customers place orders. Most 3PLs connect to your online store or order system so orders flow in automatically. Pricing usually combines storage, handling, and shipping charges, though the exact structure depends on the provider.

## When does a 3PL make sense?

A 3PL often fits e-commerce operators and importers whose order volume is outgrowing their own warehouse space or staff. Before you sign, compare each provider's service levels, location coverage, and contract terms. A 3PL also differs from a freight forwarder, which focuses on moving cargo between origin and destination.

Related terms: [Ecommerce Fulfillment](https://www.flexport.com/glossary/ecommerce-fulfillment/) and [Warehouse Management System (WMS)](https://www.flexport.com/glossary/wms-warehouse-management-system/).

Back to the [full glossary](https://www.flexport.com/glossary/).

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*This is a markdown version of [https://www.flexport.com/glossary/3pl-third-party-logistics/](https://www.flexport.com/glossary/3pl-third-party-logistics/) for AI/LLM consumption.*