- Third party supply of logistics related operations between traders by an independent organization.
- Third Party Logistics is the activity of outsourcing activities related to Logistics and Distribution. The 3PL industry includes Logistics Solution Providers (LSPs) and the shippers whose business processes they support.
- A 3PL is an outsourced provider that manages all or a significant part of an organization’s logistics requirements and performs transportation, locating and sometimes product consolidation activities.
- Third Party Logistics (3PL) is the function by which the owner of goods (The Client Company) outsources various elements of the supply chain to one 3 PL company that can perform the management function of the clients inbound freight, customs, warehousing, order fulfillment, distribution, and outbound freight to the clients customers.
- Third party logistics describes businesses that provide one or many of a variety of logistics-related services. Types of services would include public warehousing, contract warehousing, transportation management, distribution management, freight consolidation.
- A standard definition of just what a third-party logistics provider is can vary from contract to contract. Is everyone who thinks they are engaged in a “third-party contract” really involved in a “third-party contract?” If a distributor, for example, has the UPS truck pull up to their door a few times a day or week, is UPS their 3PL? And are third-party agreements a threat—a possible replacement, in some cases—for distributors?
- We define the Third-Party Logistics provider as one who is responsible to “integrate, coordinate, and manage functions for the smooth handling of sourcing, output and production.”
- A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides a one stop shop service to its customers of outsourced (or “third party”) logistics services for part, or all of their supply chain management functions.
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