Third-Party Logistics (3PL)
Third-party logistics (3PL) is the practice of delegating a company's entire supply chain to a specialized external provider.
These 3PL providers specialize in services like warehousing, freight transportation, and inventory management. The key benefit for manufacturers is strategic: it allows them to dedicate resources to their core competencies while leveraging the 3PL's expertise, technology, and economies of scale. This approach is crucial for navigating complex, global supply chains and achieving greater flexibility and cost efficiency.