3PL logistics

3PL logistics (Third-party Logistics): What and how does it operate

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In today’s complex modern world, businesses focus day and night on marketing, sales, and product development. Rather than spending time worrying about how to get parcels to their customers.

 This might be the reason businesses are facing issues in supply chain management. For firms facing challenges in their business, the right 3PL logistics 3PL stands for third-party logistics might be the solution for all your hassles. 

However, 3PL service in Fresno, California can be a feasible solution that guarantees fulfillment operations such as timely delivery, and customer satisfaction and increases sales of your bottom line. 

Let’s explore operation to a 3PL logistics in Fresno, California, and know how it works and how can your business grow using logistics services. 

What is 3PL? (Third-Party Logistics) 

A 3PL (Third-Party Logistics) provider is a company that outsources logistics services to other companies. 

This includes various aspects of the company’s supply chain and logistics operations.

 The 3PL can help include transportation, warehousing, fulfillment process, and distribution. 

However, using the service of a 3PL can benefit businesses in their flexibility, scalability, and cost savings. 

Here is a scenario to help describe their function: 

Imagine you are a growing SMB (small and midsize business) currently selling products through an e-commerce platform. As your sales increase you realize you need huge space to store your expanding commodities and re3edesources to expedite day-to-day operations. (i.e filtering orders and packing parcels to ship) without a best-size facility, enough staff, or technology to support multiple order fulfillment. 

You are concerned you may not be able to meet rising demand. 

To maintain timely delivery and order accuracy, you need to outsource your fulfillment logistics and supply chain management. You need a service capable enough to handle your logistics and transportation service such as e-commerce orders and get parcels shipped in a timely fashion. 

However, 3PL Third-party logistics service in Fresno, California can be the right fit for you. And it can be win/win for everyone involved. 

What is a 3PL Warehouse? (Fulfillment Center) 

Guide to third-party logistics

Third-party logistics, 3PL for short, are utilized to outsource the warehouse and shipment needs of third parties for the supplies and fulfillment services of their customers.

In simple terms, 3PLs is an outsourced business that takes care of companies’ logistics operations and supply chains. 

In contrast to handling their inventory, 3PL warehouse, frequently supplies, stores, and ships. The products of other companies or other businesses. 

They are mostly considered as hybrid 3PL if they handle and store for both their own company and clients. 

Role of 3PL providers in the supply chain: Working with a 3PL 

If you are in search of using third-party logistics services to optimize your business logistics operation. Partnering with a 3PL provider can be quite beneficial for your company. 

Here are the roles and functions of using a 3PL service in the supply chain for your better understanding. 

Businesses who work on a high level and have a concern about storing their products. Third-party logistics warehouse provides warehousing solutions, including storage facilities for products. 

They expertly manage supply chain operations, ensuring that products are stored, handled, and packed properly. Third party logistics lessens the burden on businesses that can focus on their core management system. 

  • Partner with a 3PL for Transportation:

3PL providers manage the transportation services of products, including arranging freight, optimizing routes, and providing timely deliveries. The 3PL Logistics industry has expertise in choosing the best routes that can work efficiently. 

  • Inventory Management: Order Fulfillment 

Businesses using 3PL services do not face order cancellation hassle or not meeting the required demand of customers. 3PL logistics uses advanced systems and technologies to keep track of in-stock or out-of-stock products which manage inventory level management. 

  • Supply Chain Visibility: Everything You Need to Know 

3PL service is known for its timely right decisions. By keeping track and using advanced software. To provide businesses with data and insights to make informed decisions. Hence, this increases the visibility into the supply chain. 

  • 3PL Providers Offer Cost Savings: 

Outsourcing logistics to 3PL providers often benefits such as cost savings. 3PL might benefit from economies of scale, such as a reduction of the cost of transport Qing and warehousing costs for those clients.

3PL warehouse management system plays a vital role in enhancing your supply chain management. By reducing costs, ensuring efficiency, and increasing overall logistics management for business. 

Also Read: How transloading can help enhance Logistics

What Benefits you will get if you outsource logistics service to 3PL service in Fresno, California

There are multiple benefits a company can get if optioning for experienced 3PL services. Let’s Break the ice and see what benefits your company can get. 

3pl Provide Cost Savings: 

One of the main reasons companies opt for 3PL logistics is to save costs. The 3PL services collaborate with multiple sellers so they can use their buying power to obtain minimum prices with logistics vendors on products. Such as shipping services and items. 

Which can be a challenging task for an individual business to achieve. 

Here are many ways that a 3PL  service providers helps decrease costs. 

Reduces Capital Investment Costs: Service Providers

A businessman might think that it will be a good option to operate their private warehouse and handle fulfillment orders with their staff, but optioning for this can be expensive. 

 As the business expands so do the sales, and so do costs of operation such as labor, rent, security, and packaging products. It will be beneficial for businesses if opt for 3PL services. 

Shipping Costs: Know about Third-party Logistics 

The arduous size and reach of the 3PL business significantly decreases the cost of shipping. 

As the dealer tackling your fulfillment, you cannot let go of the prices obtained by a 3PL. 

3PL services have a huge network of shipping retailers. So they know the best ones to use for multiple destinations,  can operate the sales channels, and know the varying prices depending on the time of year. 

They ship dozens of products using various companies every day. So they can easily negotiate huge bulk discount rates with the biggest shipping carriers. 

Yes, you might be able to save only a smaller amount but the savings increase. As the sales expand the savings add up and impact your bottom Seasonal Flexibility: 

Frequently, sellers enjoy an increase in their sales at certain points throughout the year. 

Due to special discounts or the weekend rush, sales often go up, you need warehouse space more. 

When sales fly, you’ll need to buy more packages. And when the holiday period is through your costs of shipping decrease. 

A third-party logistics has the potential to scale up and down as required so your company won’t be facing a hard hit over the additional margin of expenses. 

Higher Level of Experience: Use a 3PL 

As the owner of a successful company you might be an expert in generating sales, fulfillment, and logistics might not be your area of specialty. 

As your company sales fly high you’ll need professional logistics experts in charge who will be able to provide more benefits. Outsourcing fulfillment to a third-party can benefit your business. 

Opt for Third-Party Logistics Providers for Warehouse Safeness: 

Running a warehouse is a difficult task. You will have to ensure health and safety regulations and standards which include training, certification, and timely equipment checks. Logistics service providers can eliminate this aspect. 

However, working in the warehouse takes time and extra staff. Outsourcing your workflow to 3PL logistics helps you maintain security and maintain your work which directly saves your costs and time. 

Logistics Providers may also Help Improve Customer Satisfaction:  

Handling daily shipping, dispatching and logistics burdens you daily and might result in error. Customer satisfaction plays a huge role whether it is an organization or any company which can impact your business

 It all depends on how you grow your customer base. 

A 3PL service can reduce the risk of incorrect orders, delays in deliveries, and incorrect labeling.

Logistics processes decrease errors and always provide greater customer satisfaction so you can efficiently grow your business and improve customer satisfaction.  

Required Equipment: Logistics Provider 

Any business dealing with daily customers and products often leads to errors in machines and breakage of equipment or requires maintenance to fulfill daily requirements.  

The equipment needed to function in a warehouse includes pallets, conveyor belts, forklifts, and barcode scanners. 

The upfront expenses of buying them are often costly and so are the ongoing repair and maintenance. 

 3PL logistics always have such equipment so you do not have to worry about purchasing your equipment.

Moreover, 3pl is the ability to repair and maintain all their technical and mechanical devices which saves your shipping rates. 

WMS Software and IT Capabilities: Best 3pl

The immense quantity of software utilized by a logistics company is something that many people are shocked to discover.

To monitor sales and inventory of every component of third-party software, which includes 3PL accounting software, shopping cart interactions, and logistics software. Needs to be functional with WMS. 

Every single function works smoothly and efficiently.

However, when you partner with a 3PL logistics in Fresno, California. Your issue will be solved with the WMS software to determine what works best. 

The 3PL service will take charge of using the best WMS for 3PL warehouses in place. 

If you opt for 3PL you never have to worry about the hidden costs of IT components or training staff to run the warehouse. 

Every minor to major function will be handled by the 3PL service. 

Going Paperless: 3pl Provider 

Business always challenges multiple errors when dealing with paperwork. A 3PL warehouse can benefit your business by cutting off manual errors.

 Advanced technology is used by 3PL service to reduce manual work which can lead to human mistakes. Which can be very costly for a company. 

Partnering with a 3PL that offers paperless warehouse management means you can save costs on these expensive components. 

Reduce costs:

If you are spending a huge amount of time with fulfillment or order and packaging then your core business might start to suffer. 

 If you assign your business to 3PL you can free yourself from daily hassles and you can reinvest in your business. 

Thus, you get more energy and time to focus on your company. 

Opportunity cost is a huge concern if you’re a startup business. You will have to work on multiple operations so your business continues to expand. Often your long-term outcomes hinge on the situation. 

Destination Matters: Inventory Management Software  

If your company deals with self-fulfillment then there are chances that you are delivering the parcel to individual locations. 

So the chore remains durable at your end. In addition, your customer information such as location and number of distribution centers. All matter because they can add to the amount of time it takes for your item’s delivery and the expenses. 

Inventory and fulfillment in 3PL works with multiple distribution centers that are strategically located which gives them a much wider reach. 

These factors collectively reduce the prices of your shipping. 

These are the main benefits your company can get if you collaborate with 3PL logistics, which can lead to great outcomes. From reaching the products to customers with timely delivery which hence improves customer satisfaction. 

third-party logistics system

Services provided by 3PL logistics:Choose a 3pl

There are multiple services provided by 3PL in Fresno, California. Some might be experts in one niche and others in other approaches. 

Keep reading to explore several services provided by 3PL: 


Hire a 3PL that focuses on the essential service of transportation, which they use to transfer products from manufacturers and warehouses to businesses and customers. 

look for a 3pl that uses modest shippers like USPS, UPS, and FedEx are often used to transfer smaller goods. While carriers transport and handle huge loads via multiple nations. 

Warehousing, Fulfillment, and Distribution: Partner with 3pl 

Many 3PL warehouses concentrate on offering services like warehousing, fulfillment, and packaging coupled with shipping and returns. These 3PLs are utilized by buyers to delegate all of their shipping and warehousing services. 

The 3PL services that handle these also handle cargo prices, consumer identification, logistics, and transportation. 

Financial 3PL service : 

Multinational e-commerce businesses typically use financial 3PLs that offer financial and cost control services to help control and reduce the cost linked with handling, tracking, and delivering goods. 

Bigger enterprises generally have their needs covered by 3PLs which provide these offers. 

Primary 3PL service: Supply Chain Management 

A running 3PL can take responsibility for all logistical details, allowing a business to focus on other aspects of its core services or supply chain.

The main service 3PLs provides: 


To process orders and shipping packages, a 3PL has to receive goods. A company’s supply of products will be stored at a 3PL warehouse until it’s time to deliver them to a customer. 

The business may or may not rely on freight forwarders to manage and organize huge quantities that flow from the supplier to the fulfillment center. Works with 3PLs to set up incoming shipments. 

A combined 3PL warehouse management 

 Methods include the overall procedure. 

The 3PL companies use advanced management software installed which serves to make techniques easier. The installed software identifies the location 

of the items and then stored in storage which makes it easier at the time of delivery. 


Once the order is placed by a customer the next step is known as picking. After evaluating the online order a 3PL delivery service will deliver it to a warehouse or distribution center. 

Following confirmation of the order, then it is picked from the warehouse or storage facility for delivery to the customer. 


After the completion of picking, another process takes place which is to organize and box the order for dispatching.

A 3PL service will ensure the best packaging for the product to eliminate the chances of breakage and make sure that the product is safe, labeled, and secure while delivering. Effective method approaches are made throughout the entire procedure. A 3PL company must be equipped with modern amenities when it comes to packing material. 


Shipping is the most challenging yet expensive process but it is significantly crucial. With the enormous number of carriers, shipping options for each vehicle, location, and deadlines everything becomes wrapped in complications. A 3PL has an approach that values shipping, expenditures, delivery time management, and making sure that the customer receives the package on time. 


This is the common issue when a customer places an incorrect order or it comes with shipping damage. Often the buyer seeks return which is a common part of the shopping process. A skilled 3PL company is always prepared to face such challenges, which revive products, track their reception, and establish firm rules with the retailer. So they will know exactly what they are supposed to do with the returns. 

Who makes use of 3PL services? 3pl Companies 

3PL service operates as an outsourcing company that tackles companies’ logistical and coordination requirements. Business, brands, and consumers usually outsource their supply chain requirements. Such as shipping and warehousing. 

Therefore, many companies are optioning the services of 3PLs regularly. They range from the smallest business to e-commerce retailers to Fortune 500 firms. 

Each one sells a wide range of products. 3PLs provide services that can expand your business. 

Small online business: Use 3pl 

A small business may initially handle the order fulfillment. However, when a company grows and sales increase. It eventually takes an inordinate amount of time 

packing orders and shipping in-house. 

Thus, a firm cannot scale because of the excessive workload. A startup company can add workers, but eventually, they will run out of storage space and will have to rent a warehouse to expand. Which is a costly process. 

Usually, small businesses face difficulty because of the new sales generated and their business expands. But the costs and the space requirements are burdensome and eat all of their profits. 

The companies will face spending excessive amounts on storage costs and workers’ salaries in order to complete orders and manage stock. 

The solution to the problem is outsourcing your hassles 3PLs which will ensure that the company starts concentrating on other requirements while also saving money. 

Order shipping will be handled by 3PL Logistics l, who will also offer necessary services while decreasing costs.

Medium-Sized Companies: Logistics Companies 

Companies that deal with 20 to 100 staff can benefit from 3PL. An expanding business needs 3PL for techniques fulfillment to match its degree of growth. 

Reaching out to 3PLs can be quite beneficial and helps meet demands and scale up once the sales increase. 

To ensure that the products reach the customers more quickly and at lower prices and to assist companies. 

Becoming more successful companies may sometimes deliberately spread inventory among several distribution centers. 

Large Fortune Companies: 

Since there are many types and sizes of 3PL companies. A 3PL that is designed for a small online business will not be implied on a large fortune company. 

Each 3PL is designed to meet a company’s requirements and, the needs of their customers. Including tracking supplies through several channels and other demands. 

With the goal, of efficiently control expenses and guaranteeing enhanced efficiency. Large companies mostly outsource their supply chain to at least one 3PL provider. 

Companies that use 3PLs:  3pl Partner 

The fastest-growing and most profitable business collaborates with 3PLs. No matter, whether they sell a single product or a whole catalog, handmade goods or periodic orders.  Numerous companies, including those selling the following, make use of 3PLs: 

  • Pet Equipments
  • Electronics 
  • Nutraceuticals 
  • Clothing 
  • Cosmetics 
  • Raw materials 
  • General products 
  • Plus more!

Also Read: Storage Unit in Fresno

Final verdict 

3PL warehousing provides businesses with the advantages of reliable storage, efficient control over inventories, and fastest delivery. 

Businesses can take advantage by using the 3PL service in Fresno, California. Enabling quicker delivery, cutting off warehouse costs, and less expensive distribution. 

FAQS: 3pl logistics

What does 3PL stand for in logistics?

3PL stands for Third-Party Logistics. It refers to outsourcing logistics and supply chain functions to a specialized third-party provider.

What services do 3PL providers typically offer?

3PL providers offer a range of services, including transportation, warehousing, order fulfillment, inventory management, and distribution.

How does partnering with a 3PL provider benefit businesses?

Businesses can benefit from cost savings, improved efficiency, enhanced flexibility, and access to specialized expertise by outsourcing logistics functions to a 3PL provider.

What criteria should businesses consider when choosing a 3PL partner?

Criteria such as experience, scalability, technology capabilities, geographical reach, and a proven track record should be considered when selecting a 3PL partner.

Can 3PL providers integrate with existing business systems and technologies?

Yes, many 3PL providers offer integration with a variety of business systems, including ERP (Enterprise Resource Planning) and WMS (Warehouse Management System).

How does technology play a role in 3PL logistics operations?

Technology enables real-time tracking, inventory visibility, and data analytics, contributing to more efficient and data-driven 3PL logistics operations.

What industries commonly utilize 3PL services?

Various industries, including e-commerce, retail, manufacturing, healthcare, and automotive, commonly leverage 3PL services to optimize their supply chain operations.

Can 3PL providers handle international logistics and customs clearance?

Many 3PL providers have global networks and expertise to handle international logistics, including customs clearance and compliance with international regulations.

What is the difference between 3PL and 4PL logistics?

While 3PL providers focus on specific logistics functions, 4PL providers (Fourth-Party Logistics) manage and optimize entire supply chain processes, often acting as a strategic partner.

How can businesses measure the success of their partnership with a 3PL provider?

Key performance indicators (KPIs) such as on-time delivery, order accuracy, cost savings, and customer satisfaction are commonly used to assess the success of a 3PL partnership.