What Is 3PL and Why Is It Making Headlines?

The logistics industry is booming, and the numbers speak for themselves. According to the most recent statistics from Statista, the logistics industry will surpass 13.7 billion euros by 2027. 

Meanwhile, Businesswire reports that the demand for warehouse roles rose 20-25% in December 2020-July 2021 period. The transportation landscape has changed dramatically in recent years as online shopping continues its global takeover and more businesses go 100% digital. 

With all this growth happening at once and more on the way, it’s no wonder why third-party logistics providers are seeing such a surge in popularity among their clients.

What Is 3PL?

3PL refers to a logistics service provider. 3PL logistics companies specialize in moving goods across the supply chain. They can be very useful for businesses that are looking to streamline their shipping processes. They can help with everything from warehouse management to distribution and delivery, and they may even help you get an online storefront up and running.

3PLs aren’t just for big companies, small businesses can take advantage of these services too.

Which 3PL Services Are the Most Common?

3PLs can provide a variety of services, from warehousing and distribution to transportation and more.

  • Warehousing and distribution: This is the most common type of 3PL service. It involves managing your inventory so that it’s ready for shipping when needed, as well as picking, packing, labeling, and maintaining your products in warehouses.
  • Transportation: This type of service helps you move goods from one place to another via trucking or other means.
  • Fulfillment: This includes processing orders from customers who have placed them with your business or brand online. It also includes taking care of returns on behalf of businesses that sell merchandise through an e-commerce site like Amazon.

What Do 3PLS Do?

3PLs can help you manage every aspect of your supply chain. From transportation and storage to warehousing, packaging, inventory management, and more. The services they offer are extensive.

  • Transportation: Whether you’re shipping goods across the country or across town, 3PLs will handle all aspects of the logistics involved in getting your products where they need to go. They can also move finished goods from one warehouse location to another center or facility as needed so that your business can stay agile no matter what is going on within its supply chain network at any given time.
  • Warehousing and distribution management: when it comes to shipping large products, 3PLs have facilities equipped with technology capable of handling these large volumes efficiently while still keeping track of where each item goes within the facility. This ensures that there aren’t any mistakes made during the processing that could cost you money down the road.
  • Project management consulting services: if there’s one thing that sets 3PLs apart from their competition, it might just be their ability to provide project management consulting services for clients who need help streamlining operations within their own businesses. 

How Do 3PLS Help Businesses?

3PLs can help businesses manage their supply chains. They take on the responsibility of moving products from point A to point B, and they are often used by large companies with complex supply chains. 

3PLs can also help reduce costs for businesses by taking some of the burdens off of them in terms of logistics, warehousing, transportation, etc. For example, if you’re a retailer that has hundreds or thousands of stores around the world but only one warehouse in New Jersey, it’s not feasible for you to have an individual employee at each store managing inventory levels and shipping orders out when necessary. 

Instead, you will let an outsourced company do the task because it’s more efficient than having each person handle their own orders at every location independently.

Why Are 3PLS on the Rise?

According to a report published in GlobalNewswire, the global 3PL market will reach USD 2018.22 billion by 2030. So, why are 3PLs on the rise? There are a few reasons. First of all, more companies are going 100% with 3PL solutions and focusing on full-on supply chain management.

Second, 3PLs can help you manage your supply chain. They provide you with IT solutions that will make it easier for you to track and trace where products are at any given time.

Third, 3PLs can help you get more visibility into your supply chain through data analytics and reporting tools like analytics dashboards that let you know exactly what’s happening in real time. This helps with managing demand or meeting deadlines while staying within budget limitations or other parameters set by customers or vendors who have agreed upon payment terms upfront.

Why Are More Companies Choosing to Go 100% With a 3PL Solution?

There are many reasons why a business might choose to go 100% with a 3PL solution. The following are just some of the benefits:

  • Save money: A 3PL can help companies save money by taking on the costs associated with shipping and distribution. This can mean no more expensive employee payrolls or laborious administrative processes. This frees up resources for more important tasks like expanding your brand and growing your business.
  • Improve efficiency: A 3PL will provide you with access to all of its facilities, meaning that there’s no need for you to maintain physical infrastructure in order to ship goods across the country. This is especially beneficial if there are multiple locations involved in your operation. You won’t have any trouble finding an appropriate location for each shipment because one company handles everything.


If you’re not already using a 3PL, it may be time to consider one. Supply chains get more complex every year, and a good third-party logistics provider can simplify things for you. They can help your company reduce costs, improve customer satisfaction and increase capacity by taking on some of the work that would otherwise fall on your shoulders. 

Third-party logistics providers take care of all your shipping needs, from managing your inventory and picking up orders from customers to delivering them on time and safely. They also offer special services like warehousing, packaging assistance, and even international shipping capabilities.

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