3PL (Third-Party Logistics)

Third-Party Logistics (3PL) is a term used in the procurement industry to describe an external organization or firm that provides services related to the supply chain. This typically involves warehousing and distribution, but can also include transportation, inventory management, and other activities. 3PLs allow organizations to reduce costs, increase efficiency, and focus on their core competencies. By outsourcing these functions, businesses can maintain an agile response to changing demands while also achieving greater cost savings.