In this blog article, you will learn how a 3PL can help you improve your logistics operations. Discover any changes you may need to make in order to convert your process into a 3PL-enabled system, as well as what types of benefits could arise to the business.

3PL Definition

In 2016, almost 2.5% of global GDP – $1.2 trillion in services – was generated by the 3PL services industry. In total, the 3PL industry concept has four key drivers: consolidation; digitization; optimization, and fulfillment. A 3PL is a third-party logistics service that can assist with transporting or storing your inventory. With our experience and expertise, we offer unique solutions for superior inventory management, integrated warehousing, and shipping logistics services.

A broad definition of a 3PL service is a company that manages transportation, warehousing, inventory, and logistics services for other businesses. Some companies provide these services on a contract or rental basis while others provide them in-house. A 3PL provider can help streamline your logistics operations with the use of technology and special expertise.

What is the Major Function of a 3PL?

3PL is a logistics and transportation solution, it manages corporate supply chains of any size. If you are new to the business world, a 3PL might be just what you need to jumpstart your global operation. They specialize in order fulfillment, transportation management, and regulation compliance ensuring that you don’t get fined by the government or end up with poorly received shipments. A 3PL in canada manages the transportation and logistics of large shipments, typically parts and finished products from manufacturers to retailers or resellers.

A 3PL can also be utilized by new business ventures to transport goods from factories or warehouses to distribution centers. In most cases, the 3PL assists transportation managers in coordinating receiving and dispatching. A 3PL, bulk distribution (BD), or warehousing service is the provider of goods to a facility in need of unloading. Unloading providers range from large industrial facilities that need low-volume handling services to ship ingredients into kitchens, smaller operations transporting ingredients for restaurants and coffee shops, and even individuals that want exclusive responsibility for shipping their products.

3PL Benefits

3PL Services helps logistics companies make a positive impact on the world by providing sustainable, efficient solutions for your supply chain. BNSF is one of the few 3PLs that actually operates locomotives and offers freight, freight forwarding, and intermodal services from coast to coast.

3PL service provides service hygiene and ERP services. Using our 3PL services, your company can benefit from the latest innovations in order to improve productivity and processes. 3PL services are used to reduce costs in a variety of logistics-related processes. They can be effective for three types of benefits:Transformation: add value on products being produced or received by a facility.

Automation: set alerts for delivery drivers and notifies them when inventory is low
Reclaim resources: repurpose excess capacity 3PL services offer many benefits. When your company needs a big investment in facilities, such as warehouses, 3PL services may be just what you’re looking for. They also have benefits when used in order to store inventory and certain raw materials.

These are types of required requirements that specialize in dealing with logistics in solutions like pricing, warehousing, transportation, loading and offloading equipment, coverage options to clear the way for safe transport, or assist in making deliveries of goods.

Backed by tons of experience and advanced technology, we can help your business scale and make big improvements. Dynamic pricing, project management, smaller storage space, rental trucks, and the ability to work with new suppliers are just a few things that we have to offer.

Blockchain Technology and the Future of 3PL

Blockchain technology has the potential to transform logistics by creating a secure and powerful solution for distribution that utilizes both old and new technologies, such as RFID tags and mobile technologies. As the value of cryptocurrency increases these days, companies also see the usefulness in using Blockchain Technology.

Blockchain provides a digital ledger of transactions and is incredibly secure as there is no central server that can be hacked. The way 3PL uses this technology is by having everything on the blockchain, providing transparency to all transactions. There are still a lot of hurdles with using blockchain technology and many services are only available in R&D mode right now.


The three-party logistics (3PL) industry is widely spreading due to the development of technological progress. However, there are still many startups that do not understand how it works, so in order to excel, it is necessary to be open about the services.

Taylor Gilbert is the admin and freelance writer at How About Tech since 2020. He primarily writes Tech articles, How-to guides and Entertainment as well.