What Is a 3PL? A Plain-English Guide to Third-Party Logistics Jobs
3PLs come up constantly in logistics conversations, but few people explain them clearly. Here is what a 3PL is, how it works and the jobs you can do in one.
If you hang around logistics forums for long, you will see 3PL mentioned in almost every thread, whether it is a small business looking for a warehouse partner or someone asking whether a 3PL job is a good start. So what is a 3PL? Here is a plain-English guide, along with the kinds of jobs you can do in one.
What Is a 3PL?
A 3PL, or third-party logistics provider, is a company that handles logistics on behalf of another business. Instead of running its own warehouse and delivery fleet, a retailer or manufacturer pays a 3PL to store its stock, pick and pack orders, manage returns and arrange transport.
The first party is the business selling the goods. The second party is the customer buying them. The third party is the logistics company in the middle.
What Does a 3PL Do?
- Warehousing and storage
- Picking, packing and dispatching orders
- Transport, from pallet delivery to full truckloads
- Returns handling
- Inventory management and reporting
- Value-added services, such as kitting, labelling or light assembly
Some 3PLs work for one large client in a dedicated site. Others are shared-user warehouses serving many smaller businesses from one building.
2PL, 3PL and 4PL: What Is the Difference?
A 2PL is a carrier that moves goods, such as a haulier or shipping line, without managing the wider operation. A 3PL handles the physical logistics work, such as storage and fulfilment, and often arranges transport too. A 4PL sits a level above, managing a business’s whole supply chain, including several 3PLs and carriers, often without owning warehouses itself.
Why Businesses Use a 3PL
Using a 3PL lets a business grow without buying warehouses, vehicles and systems. It can cope with peaks, such as Christmas, without hiring and training staff for a few weeks. For online sellers, a good 3PL can also mean faster delivery and fewer mistakes.
Jobs in Third-Party Logistics
Because 3PLs exist to run logistics, they employ a lot of people across many roles:
Is a 3PL a Good Place to Start Your Career?
For many people, yes. Third-party logistics companies tend to be busy, varied and well organised, and they often promote from within. Working across different clients teaches you a lot quickly. The pace can be demanding, especially at peak, so it suits people who like a fast-moving environment.
You can browse warehouse and logistics jobs on our vacancies page or learn more on our logistics jobs hub. Our logistics blog also has a guide to warehouse operative duties.
What Is a 3PL? Frequently Asked Questions
What is a 3PL?
A 3PL, or third-party logistics provider, is a company that runs logistics for other businesses, such as storage, order fulfilment, returns and transport.
What is the difference between a 3PL and a 4PL?
A 3PL carries out the physical logistics work. A 4PL manages a business's whole supply chain, often coordinating several 3PLs and carriers.
What jobs are there in a 3PL?
3PLs employ warehouse operatives, forklift drivers, team leaders, stock controllers, transport planners, HGV drivers, account managers and operations managers.
Is working at a 3PL a good job?
It can be a good start. 3PLs are often busy and varied and promote from within, though the pace can be demanding at peak times.
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