Third-Party Logistics (3PL)
An outsourced provider that warehouses, picks, packs, and ships a brand’s orders.
Also known as: 3PL
What is Third-Party Logistics (3PL)?
A Third-Party Logistics provider (3PL) is an outsourced company that handles warehousing, inventory, pick-pack, and shipping on a brand’s behalf, letting the brand scale fulfillment without owning a warehouse. Brands connect to 3PLs through documents like the 940 shipping order and 945 shipping advice. Multi-3PL setups add flexibility but multiply the risk of fragmented inventory and inconsistent data.
How Endless handles it
Endless orchestrates one or many 3PLs from a single order and inventory model, sending 940s and reconciling 945s so fulfillment stays unified no matter how many warehouses are involved.
Frequently asked
When should a brand use a 3PL instead of self-fulfilling?
A 3PL makes sense when order volume, geographic reach, or channel complexity outgrows what an in-house warehouse can handle efficiently. The tradeoff is less direct control and a dependence on clean data flowing between the brand’s system and the 3PL.
Related terms
Browse the full commerce operations glossary.
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