What is 3PL?
3PL is an acronym for third-party logistics. Third-party logistics is a business sector that handles the packaging (sometimes), shipping, storage, and/or freight forwarding for other businesses.
If a company is selling or manufacturing a large volume of products, the shipping and storage can be very cumbersome and complex. Often companies hire an outside company to manage and handle all the 3PL needs which gets their products into the buyers’ hands.
For example, if you manufacture and sell widgets, you can probably handle shipping three per week. However, if you are selling 3000 per week, then the logistics of packaging, storing, and shipping by rail and/or plane and/or truck can become more than you may want to handle. Using an outside company for 3PL mitigates your risk.
There is also inbound logistics, which covers receiving the materials you need as opposed to outbound logistics. There is also something called 4PL, which is hiring a company to handle the 3PL. That’s called “double-brokering.”
Pacific Coast Distribution handles 3PL for clients. We offer product storage in our warehouse and local distribution of those products. We also have a 3PL division that brokers freight on lanes where our asset trucks don’t run.
You may want to consider using 3PL for your company. Outsourcing this vital part of the business means that you don’t need trucks, drivers, dispatchers, mechanics, warehouses, equipment and a whole staff of logistics people. This is big business and why it’s commonly outsourced.
Pacific Coast Distribution, LTD, is a family-owned transportation and logistics company, based in Langley, British Columbia, with 20 years of experience and a fleet of 50 trucks and a 60,000-square-foot warehouse.
If you have any questions about this article or would like to talk to us about your transportation and freight needs, give us a call at (877) 999-8489.