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Third-Party Logistics (3PL)
Third-Party Logistics (3PL) refers to a provider of outsourced logistics services.
3PL companies handle various functions, including warehousing, transportation, and order fulfillment. Examples encompass DHL, FedEx Supply Chain, and XPO Logistics.
These services streamline supply chain operations by outsourcing logistics management to expert organizations. Third-party logistics providers use advanced technology and economies of scale to reduce costs and improve efficiency.
Businesses use 3PL services to focus on core competencies without investing in logistics infrastructure. Key elements include freight forwarding, inventory management, and packaging.