What is a 3PL? Third-party logistics definitions

What is a 3PL?

3PL Meaning

A 3PL, or third-party logistics provider, partners with companies to optimize their supply chain and logistics operations. They specialize in services such as transportation, freight invoice audits, freight claims management, warehousing, and order fulfillment, using technology called Transportation Management Systems (TMS).

You may also hear 3PL companies referred to as:

• Freight Brokerage
• Fulfillment Company
• Order Fulfillment Companies
• Fulfillment Warehouse
• Fulfillment Center

Not all 3PLs offer the same services, but their main goals are to serve shippers and transport freight using various modes of transportation.

What do 3PLs do?

3PLs handle transportation services, moving your inventory between various points in the supply chain. They coordinate shipments from vendors to customers, optimize carriers based off shipment analytics, and give you tracking updates.

Some 3PLs also help with global supply chain issues, managing import, export, and customs procedures.

Why do shippers need a 3PL?

Using a 3PL can significantly reduce the operational burdens of managing your supply chain. When shippers delegate these tasks to a third-party logistics provider like Translogistics (TLI), they can focus on their core responsibilities. For example, dealing with a damaged shipment or mitigating a freight claim doesn't help grow your company, but TLI can handle these issues.

Award-winning 3PLs like TLI have technology that scales businesses. I've seen shippers employ two full-time employees to manually add cost centers and GL codes to invoices and check them off email chains. Our artificial intelligence does all that more accurately, mitigating and managing freight bill issues and auto-GL coding invoices. It can even integrate directly with your ERP.

By letting a 3PL manage your inventory and logistics, you can focus on growth activities, such as finding new customer bases or developing new product lines.

Some e-commerce companies also work with 4PLs, or fourth-party logistics providers. These providers act as consultants and managers, helping design, run, and optimize your supply chain and logistics. They can also help you source and manage 3PLs.

What is 3PL Logistics?

Third-party logistics (3PL) refers to services that help companies manage their supply chain operations, including inventory management, order fulfillment, and transportation. Understanding this terminology allows you to confidently discuss the role of 3PL services at your company.

What is 3PL Terminology?

Third-party logistics encompasses a range of operations, such as inventory management, order fulfillment, and transportation. The term is often shortened to 3PL when referring to these operations providers.

If your 3PL coordinates transportation, you might also hear the term "freight brokerage." Freight brokers manage the movement of inventory and reduce transportation costs.

3PL Services

Translogistics (TLI) started in 1994. We’re recession-proof, having grown and expanded without taking on any debt, making us a low-risk choice. We offer a variety of 3PL services for shippers, including:

• Multi-modal shipment routing
• Load tendering
• TMS technology
• Freight invoice audits
• Freight claims management
• Transportation RFPs
• Spot FTL routing
• Issue resolution
• Dynamic shipment dashboards (integrated with Microsoft PowerBI or your ERP)

We also specialize in managed transportation services. This means we handle all aspects of your supply chain, from planning and execution to monitoring and optimization. Our expertise and advanced technology allow us to manage your logistics efficiently and cost-effectively. That's why many carriers trust us to manage significant parts or even the entirety of their supply chain operations. With TLI, you can focus on your core business while we take care of the complexities of transportation management.

Choose TLI for your shipping needs today!