Although logistics has always played an important role for some businesses, it is now fundamental to the global economy. The internet has made it easier than ever for consumers to purchase whatever they need at the click of a button (even before Covid-related lockdowns tipped the scales even further in favor of online shopping). Globalization, meanwhile, has meant that goods are regularly shipped across entire continents.
It is hardly surprising that the number of packages traveling around the world has been recorded at a staggering scale. In the US alone, 41% of consumers receive between one and two packages each week just from Amazon. With logistics impacting so many industries outside of e-commerce too, it has become an essential part of many company business strategies.
What does 3PL mean? And what is a 3PL partner?
Third-party logistics, often abbreviated to 3PL, is the outsourcing of logistics services to a third-party provider that operates externally to a particular retailer. Although some companies manage their own logistics services, they are increasingly working with 3PL partners.
E-commerce logistics has become more complex, with higher numbers of shipments being made each day and market shifts occurring without warning. The expertise offered by a dedicated 3PL provider can therefore be a major competitive advantage. That is part of the reason why 90% of Fortune 500 companies choose to work with a 3PL firm.