Third Party Logistics Provider (3PL)

A Third-Party Logistics Provider is a firm that provides service to its customers of outsourced (or ?third party?) logistics services for part, or all of their supply chain management functions. Third party logistics providers typically specialize in integrated operations, warehousing and transportation services, cross-docking, inventory management, packaging and freight forwarding. Often these services are bundled together. The term ?3PL? was first used in the early 1970s to identify intermediaries in transportation contracts who acted between the shipper and the carrier. They accepted shipments from the shippers and tendered them to the rail carriers and became a third party to the contract, the 3PL.