Third-party logistics
(abbreviated 3PL, or sometimes TPL) in logistics and supply chain management is a company’s use of third party businesses to outsource elements of the company’s distribution and fulfillment services.
Third party logistics providers typically specialize in integrated operation, warehousing and transportation services which can be scaled and customized to customers’ needs based on market conditions, such as the demands and delivery service requirements for their products and materials. Often, these services go beyond logistics and include value-added services related to the production or procurement of goods, i.e., services that integrate parts of the supply chain. When this integration occurs, the provider is then called a third-party supply chain management provider (3PSCM) or supply chain management service provider (SCMSP). 3PL targets particular functions within supply management, such as warehousing, transportation, or raw material provision.