What Is the Third Party Logistics Provider

by Roman Cheplyk
Wednesday, January 26, 2022
What Is the Third Party Logistics Provider

The logistic industry divides into 3 segments: third party logistics (3PL), contract logistics, and integrated logistic services.

A third party logistic provider is a business that provides logistic services to other companies. These types of companies take care of the logistics aspect for another company, whether it's by performing the pick/pack tasks or moving products from one location to another.

  • Logistics Service Providers (LSP) can provide many advantages over hiring internal staff to manage this.

Reasons why you should use logistic service providers: 

  • LSPs can handle more volume and complexity than small companies;
  • Logistic service providers work on a per shipment basis, and they're not billing you for overhead as the internal staff does. Expenses are always known ahead of time.

Small businesses don't have the resources to manage logistics processes themselves efficiently, so many seek logistics services to manage their supply chain management.

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