Glossary
What is third party logistics (3PL)?
Third party logistics (3PL) means outsourcing warehousing, fulfilment and distribution to a specialist provider. Third party logistics providers hold your stock, pick and pack orders and manage delivery without ever owning the goods themselves. |
What do third party logistics providers handle?
- Warehousing and inventory management
- Order picking, packing and dispatch
- Transport management and carrier selection
- Returns processing and reverse logistics
- Often customs clearance and bonded storage for imported stock
3PL, 4PL or freight forwarding?
A freight forwarder moves goods between points. A 3PL holds and handles them, usually under a longer-term contract tied to volume. A 4PL sits above both, managing the providers rather than the goods useful once a supply chain has more moving parts than any single provider covers.
The customs angle most miss
Where a 3PL stores imported goods, duty status matters. Stock held in a customs warehouse stays duty-suspended until it is sold, which can transform cash flow for importers holding inventory for uncertain markets. Ask whether a provider holds that authorisation before committing stock to their site.
iCustoms keeps duty status and stock movements reconciled across your 3PL sites. |
