What is a 3PL?
A 3PL — third-party logistics provider — is a company a shipper hires to handle part or all of their logistics. Typically that includes warehousing, fulfilment and transport, sometimes plus value-added services like packaging, returns or customs.
A 3PL doesn’t just move cargo (a carrier does that) and doesn’t just organise its movement (a forwarder does that). A 3PL takes over a chunk of the logistics operation on the shipper’s behalf — assets, people, processes and systems included.
What a 3PL typically offers
- Warehousing – receiving, storing, inventory management.
- Fulfilment – picking, packing, dispatching customer orders.
- Transport – inbound (suppliers → warehouse), outbound (warehouse → customer), often subcontracted.
- Returns – reverse logistics, restocking, refurbishment.
- Customs and freight forwarding – often integrated.
- Reporting – stock, throughput, on-time delivery, costs.
1PL to 5PL — the ladder
| Type | Who they are | Example |
|---|---|---|
| 1PL | The shipper itself, moving its own goods | A retailer with its own trucks |
| 2PL | A carrier moving goods on the shipper’s behalf | A trucking company |
| 3PL | A logistics provider running warehousing + transport for the shipper | A fulfilment company for an e-commerce brand |
| 4PL | A lead logistics provider managing multiple 3PLs on behalf of the shipper | A control tower operator |
| 5PL | An end-to-end supply-chain orchestrator, usually with deep technology and data integration | Large global integrators |
3PL vs Carrier vs Forwarder
| 3PL | Carrier | Forwarder | |
|---|---|---|---|
| Owns warehouses? | Yes | No | Sometimes |
| Owns vehicles? | Sometimes | Yes | Usually no |
| Books carriers? | Yes | No | Yes |
| Holds inventory? | Yes | No | No |
| Long-term contracts? | Almost always | Mix | Mix |
A simple way to remember:
- Carrier moves it.
- Forwarder books it.
- 3PL stores it and moves it on the shipper’s behalf.
- 4PL manages everyone else doing the above.
Why 3PLs need a TMS
3PLs run other people’s logistics — which means margin discipline and reporting are non-negotiable. A TMS provides:
- Per-customer cost and revenue so each contract’s margin is visible.
- Multiple branches and warehouses in one system.
- Customer-specific tariffs and rules.
- CO₂ reporting per customer, often required by the shipper.
- Open API integrations with the shipper’s ERP or shop.
Routix supports the transport side natively. For warehouse picking and inventory, a 3PL typically pairs it with a WMS.
Related concepts
See this in Routix
If you run transport as part of a wider 3PL service, start on www.routix.com and then explore Orders, Tariffs, Shipments and the API. Those parts of Routix cover the transport, contract and integration side of a 3PL operation.
