Third-party logistics (also known as 3PL or TPL) is a system in which a company (the third party) offers inventory management and delivery services to another company.
A 3PL firm transfers products from a local or international manufacturer/supplier to their final destination.
Third-party logistics providers handle inventory management, inventory storage, packaging/warehousing, freight forwarding, customs clearance and declaration, shipping and distribution, and additional services (depending on the contract).
In exchange, the 3PL handles some or all of the company's logistical needs.Third-party logistics is an application of logistics in supply chain management and logistics in which a company uses third-party logistic services to outsource supply, warehousing, and fulfillment services.
The raw materials, equipment, labor, and other resources required after the completion of a product or process are all part of the supply chain.
They include the production facility, its location, the items that are made there, the means by which the products are conveyed to the ultimate consumer's location, and the distribution channels through which the finished products are dispersed.These components make up the supply chain structure, which must function effectively in order for a firm to be successful.