Who Needs 3PL Services?
Freight Forwarders
Global logistics coordination
Shippers & Manufacturers
Production & distribution
E-Commerce & Retail
Omnichannel fulfillment
What is Third-Party Logistics (3PL)?
Third-party logistics (3PL) providers offer outsourced logistics services that help businesses manage warehousing, fulfillment, and transportation without owning the infrastructure themselves. 3PLs range from basic warehouse providers to sophisticated logistics partners offering end-to-end supply chain management, technology integration, and value-added services.
The 3PL industry has grown significantly as companies focus on core competencies while leveraging specialized logistics expertise and shared infrastructure.
Types of 3PL Services
3PL providers operate different business models and serve different market segments:
Asset-Based 3PLs
Logistics providers owning trucks, trailers, and warehouse facilities. Key services include dedicated fleet services with company-owned equipment, private fleet conversion and outsourcing, integrated warehousing and transportation under one provider, regional and national transportation networks, cross-docking and pool distribution, and temperature-controlled and specialized equipment fleets. Best for shippers seeking single-provider accountability for both warehousing and transportation with owned assets, dedicated capacity, and integrated operations.
Non-Asset / Freight Brokerage 3PLs
Logistics providers managing transportation through carrier networks without owning trucks. Key services include freight brokerage accessing capacity across carrier networks, transportation management and carrier selection, mode optimization across TL, LTL, and intermodal, carrier vetting and compliance management, shipment visibility and tracking, and freight audit and payment services. Best for shippers wanting transportation management expertise and carrier access without asset ownership constraints, with flexibility to optimize across multiple carriers.
Contract Logistics / Warehousing 3PLs
Dedicated warehouse operations and distribution services under long-term contracts. Key services include dedicated warehouse facilities for single clients, distribution center operations and management, inventory management and control, pick, pack, and ship fulfillment, value-added services including kitting, labeling, and light assembly, labor management and workforce optimization, and continuous improvement and operational excellence programs. Best for manufacturers and retailers with consistent volume requiring dedicated facilities, customized operations, and long-term logistics partnerships.
Ecommerce Fulfillment 3PLs
Fulfillment specialists focused on direct-to-consumer and marketplace order processing. Key services include B2C order fulfillment with individual order picking and packing, marketplace integration with Amazon, Shopify, WooCommerce, and other platforms, multi-channel inventory management across sales channels, same-day and next-day shipping capabilities, branded packaging and unboxing experiences, returns processing and reverse logistics, and subscription box and recurring order fulfillment. Best for e-commerce brands, DTC companies, and online retailers needing fast, accurate fulfillment with technology integration to their selling platforms.
Specialized / Niche 3PLs
3PLs focused on specific industries, product types, or logistics requirements. Key services include cold chain and temperature-controlled logistics for food and pharma, hazmat and chemical logistics with regulatory compliance, healthcare and medical device distribution, automotive aftermarket parts distribution, high-value and secure logistics for electronics and jewelry, FDA-regulated product handling for supplements and cosmetics, and alcohol and beverage distribution with compliance expertise. Best for companies with specialized product handling requirements, regulatory compliance needs, or industry-specific logistics challenges that general 3PLs cannot adequately address.
3PL Benefits
Cost Structure
- Variable Costs: Pay for what you use vs. fixed facility costs
- Shipping Rates: Aggregate volume for better carrier pricing
- Labor Efficiency: Shared labor across clients
- No Capital Investment: Avoid facility and equipment purchases
Capabilities
- Geographic Reach: Access to strategically located facilities
- Technology: WMS, TMS, and integration capabilities
- Expertise: Logistics specialization and best practices
- Scalability: Flex capacity for peaks and growth
Selecting a 3PL
1. Geographic Fit
Evaluate facility locations relative to your customers. Two-day ground coverage matters for e-commerce.
2. Service Capabilities
Match 3PL services to your requirements—fulfillment complexity, temperature, hazmat, international.
3. Technology
Assess WMS capabilities, integration with your systems, and visibility/reporting tools.
4. Industry Experience
Look for experience with your product type and channel requirements.
5. Scalability
Ensure the 3PL can handle your growth and seasonal peaks.
3PL Pricing Models
Transaction-Based
Pay per order, per line, per pick. Aligns costs with activity but can be complex to predict.
Storage-Based
Pay per pallet, per square foot, or per cubic foot stored. May include minimum commitments.
Management Fee
Fixed fee plus variable costs. Provides predictability with flexibility.
Getting Started
Explore 3PL options in our 3PL Services comparison tool to find logistics partners matching your fulfillment and distribution needs.