3PL
Business & Finance abbreviation · Logistics, Supply Chain & Trade
| Stands for | Third-party logistics |
|---|---|
| Categories | Business & Finance |
3PL stands for Third-party logistics, a logistics, supply chain & trade abbreviation.
Outsourced logistics services, such as warehousing, order fulfillment, transportation, freight brokerage, kitting and returns, provided by a specialist company on behalf of a shipper, and by extension the company providing them.
Example: We moved fulfillment to a 3PL with warehouses on both coasts to offer two-day shipping.
Usage notes
Logistics outsourcing is often described as a ladder: 1PL is the shipper doing its own logistics, 2PL an asset-based carrier, 3PL an outsourced service provider and 4PL an integrator managing several 3PLs. E-commerce brands commonly use 3PLs for fulfillment instead of running warehouses. Contracts typically charge for receiving, storage, pick-and-pack and shipping.
Related abbreviations
More logistics, supply chain & trade abbreviations
- 4PL – Fourth-party logistics
- AEO – Authorized Economic Operator
- AES – Automated Export System
- AGV – Automated guided vehicle
- AMR – Autonomous mobile robot
- AMS – Automated Manifest System
- AS/RS – Automated storage and retrieval system
- ASN – Advance shipping notice
- ATA Carnet – ATA Carnet
- AWB – Air waybill
- BAF – Bunker adjustment factor
- BCO – Beneficial cargo owner