3PL (Third-Party Logistics)
Logistics & DistributionA third-party logistics provider (3PL) is an external company that specializes in warehousing, fulfillment, and distribution services. Instead of managing their own warehouse operations, companies partner with 3PLs to store inventory, pick and pack orders, manage returns, and handle shipping. 3PLs benefit from economies of scale, allowing businesses to reduce operational costs while focusing on core competencies like sales and product development.
Related Terms
WMS (Warehouse Management System)
A Warehouse Management System (WMS) is software that controls and optimizes warehouse operations including inventory tracking, picking, packing, shipping, and receiving.
Pick and Pack
Pick and pack is a fulfillment process where warehouse workers pick items from shelves based on an order list, then pack them into a shipping box.
Order Fulfillment
Order fulfillment is the complete process of receiving, processing, picking, packing, and shipping customer orders.