3rd Party Logistics: What It Is & How It Helps Businesses Grow
A 3PL partner will help the brand smoothen everything, from warehousing to inventory management to multi-courier shipping, allowing the business to focus on growth while experts take over the back end of supply.
What Is 3rd Party Logistics (3PL)?
Third-Party Logistics (3PL) are when a firm outsources its logistics and supply chain operations to a dedicated company.
A 3PL partner manages the critical fulfillment activities like:
Storage & Warehousing
Inventory Management
Order Processing
Pick, Pack & Dispatch
Shipping Through Multiple Courier Partners
Reverse Logistics (Returns)
How Does 3PL Work?
Here's what a typical 3PL fulfillment cycle looks like:
1. Storage of Inventory
You send your stock to the 3PL warehouse, where it is sorted and stored.
2. Processing of Order
The 3PL system gets the order automatically when one is placed from a customer on your website/marketplace.
3. Pick & Pack
After picking the product from the rack, it gets packed securely by the warehouse team and is prepared for shipment.
4. Courier Allocation
The 3PL selects the best courier partner depending on cost, performance, and delivery location.
5. Delivery & Tracking
The order is shipped, and live tracking updates are delivered to customers.
6. Returns Management
This also includes return pickups and restocking by 3PL.
Top Benefits of Using a 3PL Provider
1. Lower Operational Costs
You save money on warehouses, staff, and shipping because 3PLs operate at scale.
2. Faster Deliveries (Even 1–2 Day Options)
Most 3PLs are integrated with leading courier companies to ensure timely and reliable delivery.
3. Better Customer Experience
Precise delivery, swift dispatch, and real-time tracking lead to increased customer satisfaction.
4. Access to Multiple Courier Partners
Instead of relying on one courier, 3PLs offer access to 10–20+ courier companies.
5. Inventory & Order Automation
Advanced dashboards help with stock management, order automation, and performance analysis.
3PL vs 1PL vs 2PL vs 4PL: What’s the Difference?
Type
Meaning
Example
1PL
Company manages logistics itself
Local retailers
2PL
Only transportation provider
Courier companies
3PL
Full fulfillment services
Warehousing + Shipping
4PL
Complete supply chain management
Strategic logistics partner
Why 3PL Is Growing So Rapidly in India
The ecommerce market in India is growing at an unprecedented rate. Consequently, there is a growing demand for:
PAN-India delivery
Low cost logistics
Reliable means of courier
Multi-warehouse fulfillment
Seamless returns handling
Who Should Use 3PL Services?
3PLs are ideal for:
Ecommerce sellers
D2C brands
Sellers on Instagram/Facebook
Online expanding retailers
Subscription box companies
FMCG, fashion, electronics, cosmetics & more
How to Choose the Right 3PL Provider in India
Look for a provider that offers:
Multi-courier shippingAffordable pricingSmart delivery routingEasy integration with marketplacesHigh success rate for deliveriesStrong return managementReal-time tracking dashboard24×7 support