3PL

Category: Operations

Definition (plain English)

A third-party logistics provider stores, handles, picks, packs, ships, returns, or otherwise operates logistics work on behalf of a brand, importer, distributor, or retailer.

Why it matters commercially

3PL scope changes landed cost, fulfillment cost, service level, inventory accuracy, claims ownership, and who fixes exceptions after goods arrive.

Example

An importer chose a 3PL that could receive containers, scan lot codes, hold chilled stock, cross-dock wholesale orders, and report inventory by expiry date.

Common mistake

Comparing 3PL price cards without confirming receiving rules, storage basis, pick fees, pallet handling, inventory accuracy, returns, SLAs, and exception ownership.

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