Third-Party Logistics
An organization’s use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services.
Third-Party Logistics (3PL) refers to the outsourcing of logistics and supply chain management functions to third-party companies. These services can include transportation, warehousing, inventory management, and order fulfillment.
For example, an e-commerce company might use a 3PL provider to store inventory in their warehouses and handle shipping and delivery to customers.
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