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What is 3PL?
Third Party Logistics (3PL) is the function by which the owner of goods (The Client Company) outsources various or all elements of the supply chain to one 3 PL company that can perform the management function of the client's inbound freight, warehousing, order fulfilment, distribution, and outbound freight to the client's customers

Why use a 3PL?
As businesses are continually forced to seek cost efficiencies, many senior managers are now focusing on a return to core competencies and as a consequence of this strategy, greater emphasis is put upon outsourcing, especially in the area of logistics. The benefit of outsourcing an organisation's logistics' operation is two-fold; it not only delivers financial benefits, it also improves customer service through increased efficiency and reliability.

The financial savings are derived from:
	Reduced capital investment in facilities and inventory
	Economies of scale gained by the use of a 3PL
	Better utilisation of shared resources
	Better financial return as clients focus on their core business
	Clients only pay for the resources they consume
	No fixed costs to cover during quiet times
The operational benefits are:
	Improved quality of service to your customers
	Greater flexibility as levels of stock and number of product lines change and can ensure there is no performance shortfall if sudden increases in demand occur
	Increased efficiencies and continuous improvement on current work practices