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What is 3PL?

3PL stands for Third-Party Logistics. This is when companies outsource components of their product fulfillment needs. A 3PL generally handles warehousing, shipping, distribution, and returns. There are many reasons why a company may opt for a 3PL service. A 3PL partner can reduce carrying and shipping costs, improve shipping time, minimize time spent coordinating warehouse and fulfillment dates, and more. 

For example, imagine you run an ecommerce t-shirt business that has customers all over the world. It would be beneficial to you to have products in various locations to reduce shipping costs and timelines. But having warehouses all over the world would be expensive and difficult to manage. This is where a 3PL comes in. You can hire a 3PL to store, pick, pack, and ship products for a fraction of what it would cost you to do it on your own. 

Working with a 3PL has many advantages. But, to be successful, you need to have visibility and control to ensure that your products are stored and delivered efficiently.There are business management tools capable of handling the unique requirements of working with a 3PL by prioritizing integrated systems, live data, and customization.


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