3PL
External fulfillment provider
3PL, short for third-party logistics, refers to companies that handle warehousing, shipping, and fulfillment operations for other businesses.
Rather than managing their own inventory storage and distribution, companies outsource these functions to a 3PL provider.
We switched to a 3PL when our order volume outgrew our garage operation.
The term is common in e-commerce and supply chain contexts, where 3PLs enable smaller businesses to compete with larger retailers' shipping capabilities.
Storing goods commercially
- fulfillmentState of achieved purpose
- distributionAllocation across recipients
- pick-and-packSelecting and packaging merchandise
- shipment trackingMonitoring goods in transit
inventory management · cargo handling · drayage · kitting · cold chain · consolidation · deconsolidation · transloading
Goods being transported
- carriersEntities that transport
- truckingRoad-based freight shipping
- shippingTransporting goods to destinations
- deliveryConveyance of goods
cargo · haulage · couriers · parcel · consignment · drayage · fleet management · shipment
Range of clear sight
- integrationCombining into a whole
- trackingMonitoring location over time
- APISoftware communication standard
- real-time dataInformation continuously updated now
automation · analytics · dashboard · barcode scanning · RFID · reporting · system integration
Reducing in volume
- partnershipShared business arrangement
- service agreementTerms governing provided work
- specializationConcentrated expertise in one field
- delegationTransferring responsibility downward
cost reduction · core competency · scalability · flexibility · risk mitigation · performance metrics · onboarding · transition
Productive without waste
- throughputProcessing rate over time
- accuracyDegree of correctness
- turnaroundShift in opposite direction
- schedulingAssigning times to events
capacity · picking · packing · shipping · receiving · quality control · labor management · slotting
warehousing
Storing goods commercially
- fulfillmentState of achieved purpose
- distributionAllocation across recipients
- pick-and-packSelecting and packaging merchandise
shipment tracking · inventory management · cargo handling · drayage · kitting · cold chain · consolidation · deconsolidation · transloading · hub-and-spoke
freight
Goods being transported
- carriersEntities that transport
- truckingRoad-based freight shipping
- shippingTransporting goods to destinations
delivery · cargo · haulage · couriers · parcel · consignment · drayage · fleet management · shipment · FTL
visibility
Range of clear sight
- integrationCombining into a whole
- trackingMonitoring location over time
- APISoftware communication standard
real-time data · automation · analytics · dashboard · barcode scanning · RFID · reporting · system integration
contracting
Reducing in volume
- partnershipShared business arrangement
- service agreementTerms governing provided work
- specializationConcentrated expertise in one field
delegation · cost reduction · core competency · scalability · flexibility · risk mitigation · performance metrics · onboarding · transition · compliance
efficiency
Productive without waste
- throughputProcessing rate over time
- accuracyDegree of correctness
- turnaroundShift in opposite direction
scheduling · capacity · picking · packing · shipping · receiving · quality control · labor management · slotting · batch processing
Realizing one's own potential