## What is a 3PL Provider? A third-party logistics provider, or 3PL provider, is an outsourced company that manages part or all of your logistics and transportation operations and executes transportation, freight management, warehousing, and other activities. ## Which services does a 3PL provide? If a company’s supply chain becomes too complex to manage internally, outsourcing to a 3PL is a great solution. You are still managing the overall logistics processes and strategy, but a third party handles the burdensome manual operations. Typically, a 3PL provides the following services: * Freight forwarding * Transportation management * Load management & despatch * Warehouse and inventory management * Supply chain management * Technology integration ## What are the benefits of using a 3PL provider? ### Time savings Third-party logistics providers can save companies the time they typically spend managing their supply chain, so they can focus on other areas of their business. ### Continuous optimization One of the main goals of using a 3PL is optimization. A 3rd party logistics company goes through every step of your supply chain to determine unnecessary operations and find the potential for cost savings. ### Cost savings A 3rd party logistics company provides more buying power, extensive carrier networks, and lower transportation rates. 3PLs also can help reduce the rate of returns, claims, shipping errors, and lost sales. ### Carrier capacity 3PLs give you access to the carrier capacity and required equipment needed to move your shipment regardless of the season. ### Industry insights 3PLs have thorough industry knowledge and insights, and they can accurately forecast what will work best for their customers. When companies choose to work with a 3PL provider, they fully reap these benefits as the 3PL truly becomes an extension of their team.