What is third-party logistics
A third party logistics company can store your inventory for you. It will pick, pack, and ship your products. 3PL is the vital link between your manufacturing operations and your customers. When your order fulfillment operations run smoothly, your customers are happy and your business grows. It’s not an exaggeration to say that excellent fulfillment is the key to success for eCommerce companies.
Before you start working with a third-party logistics company, it’s important to understand what 3PL is. This piece details how you can integrate third-party logistics into your operations, and how to find the best 3PL partner. If you already know that this is what you’re looking for, check out our 3PL services.
What is third-party logistics?
Third-party logistics, or 3PL, is used interchangeably with fulfillment warehouse or fulfillment center. Companies that provide 3PL services offer many of the same services as order fulfillment companies. These services include:
- Warehousing
- Inventory management
- Shipping and receiving
- FTL and LTL freight shipping
- Picking and packing
- Kitting and customization
- Reverse logistics (returns)
A third-party logistics company acts as an eCommerce fulfillment company. It provides all the services you need to outsource your logistics operations.
Different 3PL services companies specialize in different types of fulfillment and warehousing. Some are equipped for cold fulfillment. These warehouses can store and ship food products that need to be refrigerated or frozen. Other 3PL companies are prepared to store and ship hazardous materials. Red Stag Fulfillment is one of the top third-party logistics providers for heavy, bulky, and high-value products.