Third-party logistics (3PL) is when a business outsources services such as warehousing, transport and fulfilment to a specialist provider. A 3PL provider manages these operations on the customer's behalf, often across multiple locations and carriers. Why it matters for your supply chain: Outsourcing to a 3PL lets businesses scale without investing in their own warehouses, vehicles or systems. Related terms: Warehousing, Fulfilment, Supply chain management (SCM) Find out more: Contract logistics
