As your business scales, managing logistics becomes increasingly complex. Multiple warehouses, expanding product lines, and growing order volumes create new operational challenges. What worked at a smaller scale now threatens to bottleneck your growth.

If this sounds familiar, you’re not alone. Many businesses experience these growing pains. It’s a good problem to have, but it’s still a problem.

The solution? Third-party logistics, or 3PL. It’s not another business buzzword. It’s the answer to your business challenges.

Let’s go through the core aspect of 3PL and how it works in practice.

From medium-sized businesses to major brands, companies trust 3PLs with their shipping and storage needs. This article will help you decide if a 3PL partnership could solve your logistics challenges.

What is 3PL Company?

3PL, short for third-party logistics, is where businesses outsource their logistics to a specialized company. When working with a 3PL, your inventory gets stored in their warehouse, and they’re also responsible for packing orders when they come in and shipping them out to customers. Sounds too good to be true? It’s not!

Third-party logistics companies handle every aspect, including receiving your stock and managing returns, allowing you to focus on more important aspects that will let you meet your business goals.

The global 3PL market is expected to grow to USD 1,993.72 billion by 2028. This growth has significant meaning for business.

Why the Growth of 3PL Matters for Businesses

• More companies are moving to 3PL services as their logistics needs grow.
• The industry is becoming more competitive, driving innovation and better pricing.
• Advanced technology like tracking systems and automated warehousing is now standard in 3PL, improving efficiency.
• Prices may become more competitive, offering better value for clients.
• Specialized options are expanding, helping companies find 3PL providers that match their unique needs.

Why This Growth Matters:

• Market Confidence

  Investment in 3PL signals that businesses trust these service providers to handle their shipping and storage needs.

• Industry Changes

  The growth of online shopping and global supply chains has made 3PL a standard part of many business models.

What was once an optional add-on is now integral to scaling companies.

The 3PL Toolkit: Services That Power Your Business

3PL companies offer a wide range of services. But, at its core, it’s about managing the flow of goods from manufacturer to consumer.

What is 3PL Logistics?

Now you understand what a 3PL company is, let’s look at what 3PL logistics is. This term refers to the entire process of outsourcing your logistics operations to a third-party provider. It includes managing the flow of goods – warehousing, transportation, inventory management and order fulfillment.

Key Third-Party Logistics Services

• Warehousing: Modern 3PL facilities offer secure, climate-controlled storage with advanced tracking systems. Each warehouse uses specialized software to monitor and protect your inventory.
• Order Fulfillment: The 3PL team handles your orders from start to finish. They pick products, pack them securely, and ship them to your customers quickly and efficiently. . 3PLs handle your orders from start to finish.
• Transportation: Through established carrier relationships and high shipping volumes, 3PLs often secure better shipping rates than most businesses can get independently.
• Inventory Management: Smart tracking systems monitor your stock levels in real time. The software alerts you before products run low, preventing stockouts and overstock situations.
• Returns Processing: 3PLs manage product returns according to your specifications. They receive items, inspect them, and handle restocking or disposal based on your guidelines.

When to Consider a 3PL Partner

To run a successful business, you have to make smart choices about your time and resources. As orders increase, packing boxes and managing inventory can eat up hours better spent growing your company.

Many businesses reach a tipping point where handling shipping and storage becomes overwhelming. This is often when they should consider working with a 3PL provider.

A 3PL partnership frees you to focus on what matters. Instead of managing warehouse staff or tracking inventory, you can develop new products or build customer relationships. Your 3PL handles the logistics while you handle growth.

The benefits go beyond saved time. 3PL providers have the systems and staff to handle sudden spikes in orders – like during holiday seasons. They maintain relationships with shipping carriers and stay current with industry regulations. Their warehouse technology and trained staff often lead to fewer errors and faster deliveries.

Consider a 3PL partner when shipping and storage start holding back your business growth. The right provider becomes a valuable ally in your company’s success.

Key 3PL Terms to Know: Speaking the Language

If you’re new to 3PL, here are some terms that you’ll hear most often.

• SKUs are product codes. Every item gets its own number, making it easy to track each product you sell. Think of them as ID cards for your inventory.
• Kitting is bundling different items together, such as gift sets or product bundles. If you’ve ever bought a gift set, that’s kitting in action.
• Cross-docking keeps your supply moving. Products come in from your supplier and go straight out to customers, barely touching our warehouse floor. It’s fast and well organized.
• EDI is how computers talk to each other. Your sales system tells our warehouse system what to ship automatically.
• A WMS (Warehouse Management System) runs the warehouse. This software keeps track of where everything is and how to get it shipped most efficiently.
• Fulfillment means getting orders out the door. The 3PL provider receives your products, stores them, then packs and ships them when orders come in.
• Reverse logistics is all about handling returns. When customers send items back, they get sorted- whether they need to go back on the shelf, get fixed, or be replaced.

These terms come up often in 3PL conversations. Understanding them helps you make smart decisions about your shipping and storage needs.

3PL Services: A More Detailed View

Let’s explore what services 3PL companies offer and how they help your business.

Warehousing and Distribution

3PL companies store your products in large warehouses that serve many businesses.

These facilities offer:

• Strategic Locations: Warehouses sit near major shipping hubs and cities for quick delivery.
• Modern Systems: Digital tools track products and keep them secure.
• Smart Layout: Popular items stay in easy-to-reach spots.

FTL and LTL Freight Shipping and Receiving

3PLs handle both Full Truckload (FTL) and Less Than Truckload (LTL) shipping:

• FTL Shipping: This involves a full truck dedicated to one shipment. It’s typically used for large volumes of goods or when speed is crucial.
• LTL Shipping: This method combines shipments from multiple customers in one truck. It’s more cost-effective for smaller shipments but may take longer than FTL.

Picking, Packing, and Shipping

When an order comes in, 3PL staff spring into action:

• Picking: Workers or automated systems find the ordered items from warehouse shelves.
• Packing: Items are carefully packaged to ensure they arrive safely. Many 3PLs offer custom packaging options to maintain your brand identity.
• Shipping: Packed orders are labeled and prepared for shipping. 3PLs often have relationships with multiple carriers, allowing them to choose the quickest and cost-effective shipping method for each order.

Kitting

This service is useful for:

• Subscription Boxes: Combining multiple items into a curated box.
• Product Bundles: Creating sets of related products.
• Assembly: Putting together multi-part products before shipping.

Kitting can save time and money by streamlining the fulfillment process for complex orders.

Same-Day Shipping

When people place an order, they want it as soon as possible. In fact, online retailers can boost their competitive advantage by over 85% by offering same-day delivery.

So, if you can offer same-day shipping it can be a major competitive advantage.

If a 3PL offers this service, it requires:

• Fast Processes: Orders must be picked, packed, and shipped quickly.
• Strategic Locations: Warehouses should be close to customers to enable same-day delivery.
• Carrier Partnerships: 3PLs work with carriers that offer same-day delivery options.

Stock Management

Effective inventory management is important for any business.

The most important services include:

• Real-Time Tracking: 3PLs use advanced software to track inventory levels in real-time.
• Forecasting: Many 3PLs offer demand forecasting services to help businesses plan their inventory more effectively.
• Reordering: Inventory can automatically be reordered stock when levels get low, so that you never run out of popular items.
• Inventory Reporting: Regular reports help you understand your inventory turnover and make informed decisions.

Reverse Logistics

If you want to keep your customers happy, it’s important that returns are handled as quickly as possible. 3PLs manage the entire returns process.

• Receiving Returns: Processing incoming returned items.
• Inspection: Checking returned items for damage or wear.
• Restocking: Returning sellable items to inventory.
• Disposal: Properly disposing of unsellable items.
• Refurbishment: Some 3PLs offer services to repair or refurbish returned items to sell again.

3PL Order Fulfillment

Order fulfillment is a major part of third-party logistics services. So how does it work?

• A customer places an order on your website and then it’s automatically sent to the 3PL’s system.
• The staff pick the ordered items from the warehouse.
• The Items are securely packed and packaged, with custom packaging materials.
• The package is labeled and shipped out to the customer.
• The 3PL software provides tracking information, which is often automatically sent to the customer.

This process needs to happen quickly and efficiently, often getting orders out the door within hours of being placed.

Specialized 3PL Services

While the services we’ve discussed are common across most 3PLs, some providers offer specialized services:

Cold Chain Logistics

For businesses dealing with temperature-sensitive products like food and beverages or pharmaceuticals.

Hazardous Materials Handling

Some 3PLs are equipped to handle and transport hazardous materials.

White Glove Services

For high-value or delicate items that require special handling.

Value-Added Services

Additional services like product assembly, custom packaging, or even light manufacturing.

Cross-Border Logistics

For businesses operating internationally, some 3PLs specialize in managing the complexities of cross-border shipping.

Who Uses Third-Party Logistics?

3PL isn’t just for one type of business. Companies across many industries rely on third-party logistics to handle their shipping and storage needs.

E-commerce

Online retailers face constant pressure to ship products fast and keep costs down. Major players like Amazon, Walmart, and eBay use 3PL services to:

• Store products close to customers
• Ship orders quickly
• Handle returns smoothly
• Manage large product catalogs

Automotive

Car manufacturers need parts delivered at exact times to keep production lines running. Companies like Ford, Toyota, and BMW trust 3PL providers to:

• Track thousands of parts
• Deliver components on schedule
• Manage complex supply chains
• Keep assembly lines stocked

Fashion and Retail

Clothing brands deal with changing trends and seasonal demands. Zara, H&M, and Adidas rely on 3PL to:

• Store varying inventory levels
• Pack orders carefully
• Ship to stores and customers
• Handle international distribution

Technology

Tech companies need special care for sensitive electronics. Apple, Samsung, and Dell use 3PL services for:

• Safe product storage
• Careful handling
• Quick shipping for product launches
• Managing returns and repairs

Healthcare

Medical companies must follow strict rules for handling products. Pfizer, Johnson & Johnson, and other healthcare firms need 3PL providers who can:

• Keep products at the right temperature
• Follow safety regulations
• Track lot numbers
• Ensure secure delivery

Food and Beverage

Food companies need special handling for fresh products. Nestle, Coca-Cola, and similar businesses use 3PL to:

• Keep products fresh
• Maintain cold storage
• Meet food safety standards
• Deliver on time

Each industry has its own needs, but they all share one thing: 3PL helps them serve customers better while saving time and money.

Inside a 3PL Warehouse

What happens inside a 3PL warehouse?

Most business owners don’t see what happens in a 3PL facility.

Here’s what happens in these facilities each day:

• Products first arrive from your manufacturers. Our team counts everything, checks for damage, and records each item in our tracking system. Nothing moves forward until we verify the shipment matches your order exactly.
• Storage comes next. Each product gets its own spot in the warehouse, carefully chosen for easy access. The warehouse layout maximizes space while keeping popular items within quick reach.
• When orders come in, our system instantly creates task lists for the warehouse team. Staff members know exactly which items to grab and where to find them.
• The picking process moves fast. Whether it’s our warehouse staff or robotic systems, items come off the shelves quickly and accurately.
• In the packing area, your products get wrapped securely. We use the right boxes and padding to protect each item during shipping.
• The shipping department takes over next. They label packages correctly and work with different shipping companies to get orders moving.
• Through all of this, our inventory system keeps count. You’ll always have an accurate overview of what’s in stock and what’s moving out the door.

The process runs smoothly because every step connects to the next. It’s a well-practiced system that keeps your products flowing from warehouse to customer without delays.

3PL E-commerce Platform Integration

Being able to integrate with various e-commerce platforms is a major advantage of working with a 3PL. Most 3PLs offer seamless integration with popular platforms like Shopify, WooCommerce, Magento, and Amazon.

This integration allows for:

• Automatic order transmission
• Real-time inventory updates
• Synchronized tracking information
• Automated shipping label generation

The Benefits of Working with a 3PL Partner

When you team up with a 3PL provider, you gain several key advantages:

Save Money

Skip the cost of buying warehouses and hiring staff. Instead, use the 3PL’s buildings, people, and systems. This will cut down on your upfront spending and operating costs.

Grow at Your Own Pace

Need more space during busy seasons? Want to cut back during slow months? 3PLs adjust to your needs without you having to worry about hiring or laying off staff.

Learn from the Experts

3PL companies know shipping inside and out. They stay current with shipping rules and best practices so you don’t have to.

Keep Customers Happy

Get orders to customers faster and let them track their packages. When problems come up, 3PLs handle them quickly.

Use Better Technology

3PLs invest in the latest shipping and tracking systems. You get the benefits without buying expensive software yourself.

How 3PLs Help E-commerce Businesses

Online stores face tough competition. 3PLs help them succeed by:

• Using warehouses near customers for faster delivery
• Processing orders quickly
• Working with online store platforms
• Handling large order volumes during busy times

Finding the Right 3PL Partner

Look for these key features when choosing a 3PL:

Experience That Matters

Pick a 3PL that knows your industry. Ask about their work with similar businesses and check their references.

Smart Locations

Choose a 3PL with warehouses near your customers. This cuts shipping time and costs.

Good Customer Service

Your 3PL should respond quickly to problems and work with you to make things better.

Helpful Resources to Help You Evaluate 3PLs

When assessing different potential 3PL partners, consider using the following resources:

• Industry associations like the International Warehouse Logistics Association (IWLA)
• Online directories of 3PL providers
• Logistics industry publications and their provider rankings
• Customer reviews and testimonials
• On-site visits to 3PL facilities

3PL Security and Operational Continuity

Ensure your chosen 3PL has robust security measures in place to protect your inventory and data. Also, inquire about their disaster recovery and business continuity plans to ensure your operations won’t be disrupted in case of unforeseen events.

Understanding 3PL Costs

There are various costs involved when partnering with a 3PL and you shouldn’t be caught unaware.

Inventory and Order Fulfillment Costs

These typically include:

• Storage fees (often charged per pallet or cubic foot)
• Pick and pack fees
• Packaging materials
• Special project fees (e.g., kitting, custom packaging)

Shipping Costs

Shipping costs can vary based on:

• Shipping speed (standard, expedited, same-day)
• Package dimensions and weight
• Destination
• Carrier used

Many companies can offer discounted shipping rates due to their high volume of shipments.

Omnichannel Integrations

Some companies charge for integrating with your e-commerce platform or other sales channels. Consider these costs when evaluating providers.

Getting Started with 3PL: Your Step-by-Step Guide

Once you’ve decided on a provider, you’ll want to get the most value out of your relationship and ensure that the transition is as smooth as possible. You don’t want to be caught off guard.

Before You Start: The Checklist

• List your shipping needs and volumes
• Set your budget
• Know your product requirements
• Understand your peak seasons
• Map your customer locations

Key Questions for 3PL Providers Ask about:

• Storage costs and minimums
• Shipping rates and carriers
• Response time for problems
• Tech systems and integration
• Contract terms and length
• Special handling abilities
• Security measures
• Insurance coverage

Common Challenges to Plan For

• Integration takes longer than expected
• First shipments may be slow
• Staff need time to learn new systems
• Inventory counts might not match
• Customer service adjustments

Making the Switch Smoothly

• Start Small: Test with a portion of your inventory first. Add more as you build confidence.
• Keep Records: Track everything during the switch. Good records help solve early problems.
• Train Your Team: Make sure your staff knows how to use the new systems and who to contact for help.
• Inform Your Customers: Tell customers about any changes in shipping or tracking methods.
• Have a Backup Plan: Keep some inventory on hand during the transition in case of delays.

A good 3PL partner will guide you through this process. They should provide training, support, and clear communication at each step.

Understanding 3PL Compliance and Regulations

Industry Standards

3PL providers must follow strict rules to protect your products and business:

• FDA regulations for food and medical items
• OSHA workplace safety standards
• EPA environmental guidelines
• Transportation department rules
• Proper product handling methods

Safety Requirements

Warehouses need these safety measures:

• Fire prevention systems
• Security cameras
• Access controls
• Safe loading zones
• Emergency exits
• First aid stations
• Clean storage areas

International Shipping Rules

When shipping overseas, 3PLs handle:

• Customs documents
• Import/export licenses
• Country regulations
• Shipping restrictions
• Proper labeling
• Tax requirements
• Banned items lists

Quality Certifications

Look for 3PLs with these certifications:

• ISO 9001 (quality management)
• C-TPAT (supply chain security)
• HACCP (food safety)
• GMP (good manufacturing)
• GDP (good distribution)

Why Do These Matter for Your Business?

• Protect Your Brand – Following rules keeps your reputation safe and customers happy.
• Avoid Problems – Meeting standards prevents fines and shipping delays.
• Build Trust – Proper certifications show customers you take quality seriously.
• Stay Legal – Following regulations keeps your business on the right side of the law.

Always check that your 3PL partner meets the standards for your industry and products. This protects your business and customers.

Work with GPA Logistics

GPA Logistics helps businesses handle their shipping and storage needs. Our warehouses, technology, and expert team will manage your products while you focus on growing your business.

What We Do:

• Store your products safely
• Pack and ship orders
• Track your inventory
• Manage transportation
• Handle returns
• Bundle products
• Connect with your online store

Why Choose GPA:

Experience That Matters

We’ve helped businesses like yours for years. We know what works and how to solve shipping problems fast.

Smart Locations

Our warehouses sit near major cities, getting your products to customers quickly.

Better Technology

Track your products in real time. Know exactly what’s in stock and what’s shipping.

Room to Grow

Medium or go big – we adjust our services to match your needs.

Personal Support

Our team is here to help. Call us anytime with questions or concerns.

Earth-Friendly Options

We use methods that save money and help the environment.

Is a 3PL Partner The Right Choice for Your Business?

Running a business is hard. Shipping and storage shouldn’t add to your workload. That’s where GPA Logistics steps in. We handle your products while you focus on growing your company.

Our 3PL services work for all sizes of business:

• Growing brands
• Big companies

We make shipping simple. Your customers get their orders faster, and you spend less time worrying about logistics.

Want to see how we can help? Let’s talk. We’ll show you how GPA Logistics can:

• Cut your shipping costs
• Speed up deliveries
• Free up your time

Good products deserve great shipping. GPA Logistics helps you deliver both.

Contact us today for a free consultation.

Common Questions About 3PL

Q: What makes 3PL different from 4PL?

A: 3PL companies handle your shipping and storage. 4PL companies go further – they manage your entire supply chain, including any 3PL services you use.

Q: Are 3PLs worth it for a medium sized businesses?

A: Yes. Medium-sized businesses often find 3PLs helpful because they can ship products faster and more cheaply than doing it alone. You get access to professional shipping systems without buying them yourself.

Q: How long does it take to start using a 3PL?

A: Most businesses take two to eight weeks to get started. This involves connecting your sales system, moving your products to the warehouse, and training your team.

Q: Do 3PLs ship internationally?

A: Yes. Many 3PLs handle international orders. They know how to deal with customs forms and shipping rules for different countries.

Q: How do 3PLs keep my products safe?

A: 3PLs use security cameras, locked facilities, and inventory checks to protect your products. They also carry insurance in case anything gets lost or damaged.

Q: What happens if a 3PL makes a mistake?

A: Good 3PLs fix mistakes quickly. They might send rush replacements or pay for damaged items. Ask about their mistake policy before you sign up.

Q: Can I use my own boxes and packaging?

A: Yes. Most 3PLs let you use your own packaging. Some will even help you design custom boxes with your brand name and logo.