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3rd Party Logistics (3PL)

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A third-party logistics provider (3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or "Third Party") logistics services for part, or all of their supply chain management functions. Third party logistics providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers' needs based on market conditions, such as the demands and delivery service requirements for their products and materials. Often, these services go beyond logistics and include value-added services related to the production or procurement of goods, i.e., services that integrate parts of the supply chain. When this integration occurs, the provider is then called a third-party supply chain management provider (3PSCM) or supply chain management service provider (SCMSP). 3PL targets a particular function in supply management, such as warehousing, transportation, or raw material provision. [1]

Third Party Logistics Evolution
Source: SlideShare Presentation, Kuldeep Uttam


Third Party Logistics
Source: ResearchonIndia.com


References

  1. Definition of 3rd Party Logistics Wikipedia


Further Reading