what is third party logistics

Third-party logistics (3PL) refers to the process of a company outsourcing some or most of its supply chain, often including domestic or international transportation, warehousing, inventory storage or management, freight forwarding, customs brokerage, or other secondary services such as storage, packing or fulfillment. 3PL benefits include the ability to hire an expert in the field to manage shipping operations – someone who has worked to build industry relationships and knows the ins and outs of supply chains – ensuring efficiency and cost savings.