Third Party Logistics or 3PL
A 3PL or third party logistic company is an outsourced logistics service provider. Logistic services encompass anything that includes management of the way resources are moved to the areas where they are required, from the origin. Services which a 3PL company provides are transportation, warehousing, cross-docking, inventory management, packaging, and distribution. These services are integrated, or packaged, together by the provider.
Companies can outsource all or much of its logistics operations to a specialized 3PL service provider so that the companies able to spend more concentration on their core strength areas like manufacturing.
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