3PL (Third‑Party Logistics Provider)

A 3PL outsources tactical execution—warehousing, transportation and packaging—using its own or subcontracted assets so shippers convert fixed logistics costs into variable spending.
  

Sitting between the manufacturer/retailer and the carrier, a 3PL designs warehouse layouts, staffs operations, tenders freight, and leverages buying power to lower transport rates. Integrated IT connects the 3PL’s WMS/TMS to the customer's ERP, providing real-time stock and milestone visibility. 

Contractual KPIs (OTIF, cost per order, inventory accuracy) and gain-share clauses drive continuous improvement. While a 3PL focuses on execution, a 4PL orchestrates several 3PLs from a neutral control tower.