3PL (Third-Party Logistics)

Third-Party Logistics (3PL) refers to outsourcing logistics and supply chain management to a specialized company. These providers handle various services, such as warehousing, transportation, inventory management, and order fulfillment, allowing businesses to focus on their core activities. For example, an online retailer might partner with a 3PL to store products, manage shipping, and handle returns, ensuring efficient and reliable service without needing to manage these operations in-house. This arrangement can help companies save costs, improve efficiency, and scale their operations more effectively.