What a 3PL Actually Does: A Complete Breakdown of Services

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Third-party logistics (3PL) is one of those terms businesses hear constantly, but rarely get a clear explanation of. Many companies know they “need a 3PL,” yet don’t fully understand what happens once freight leaves the supplier, arrives at a warehouse, or moves across borders.

This guide breaks down what a 3PL actually does, step by step, across the supply chain. No jargon. No buzzwords. Just a practical look at how 3PL services work in real operations, and how businesses typically engage with providers like 3PL Links to manage these operations efficiently.

What Is a 3PL?

A Third-Party Logistics provider (3PL) is a company that manages part—or all—of another business’s logistics operations. This can include transportation, warehousing, inventory handling, distribution, and coordination across the supply chain.

Instead of owning warehouses, fleets, staff, and systems internally, companies partner with an experienced 3PL logistics provider such as 3PL Links to operate logistics more efficiently, flexibly, and at scale.

Some businesses use a 3PL for a single function, like warehousing. Others rely on a full-service 3PL to support end-to-end logistics across regions or countries.

Inbound Logistics: Getting Goods Into the Network

One of the first roles a 3PL plays is managing inbound freight, the movement of goods from suppliers, manufacturers, or ports into a warehouse or distribution center.

This often includes:

• Coordinating inbound transportation (truck, rail, or intermodal)

• Scheduling dock appointments

• Managing container drayage from ports

• Tracking shipment arrival times

• Handling documentation and freight visibility

For international shipments, inbound logistics may also involve port discharge coordination, transloading, or cross-border movement, services commonly handled by established 3PL partners like 3PL Links before goods ever reach storage.

Transportation Management

Transportation is a core 3PL service, but it’s more than just booking trucks.

A 3PL typically manages:

• Full Truckload (FTL)

• Less-Than-Truckload (LTL)

• Intermodal and rail freight

• Cross-border transportation

• Route planning and carrier selection

• Freight tracking and exception management

Rather than relying on one carrier, companies work with 3PLs such as 3PL Links that maintain strong carrier networks, allowing shipments to move efficiently even during capacity constraints or seasonal demand spikes.

Warehousing & Storage

Warehousing is often what people associate most with 3PLs, but modern 3PL warehousing goes far beyond simply holding inventory.

3PL warehousing services include:

• Short- and long-term storage

• Indoor and outdoor storage

• Food-grade or regulated storage

• Temperature-controlled environments

• Inventory organization and slotting

• Security and access control

Logistics providers like 3PL Links focus on optimizing inventory flow—not just storage—so goods move quickly and accurately through the supply chain.

Inventory Management & Control

Inventory accuracy is one of the biggest reasons businesses partner with a 3PL.

3PLs manage:

• Receiving and verification

• Inventory counts and reconciliation

• SKU tracking

• Lot and batch control

• FIFO / FEFO handling

• Inventory reporting and visibility

Using warehouse management systems (WMS), providers such as 3PL Links give businesses real-time visibility into inventory levels, helping reduce stockouts, overstocks, and costly errors.

Order Fulfillment & Distribution

Once inventory is stored, a 3PL often handles order fulfillment and outbound distribution.

This includes:

• Pick and pack operations

• Case picking or pallet picking

• Order consolidation

• Labeling and documentation

• Preparing shipments for retail, wholesale, or regional delivery

For businesses distributing across North America, working with a multi-service provider like 3PL Links allows for efficient regional distribution and faster delivery timelines.

Cross-Docking & Transloading

Not all freight needs to be stored.

Many 3PLs provide cross-docking and transloading services, moving goods directly from inbound to outbound transportation.

These services help:

• Reduce handling and storage costs

• Speed up delivery

• Convert containerized freight into domestic shipments

• Optimize port, rail, and road transitions

Cross-docking and transloading are commonly used by companies working with agile 3PL partners such as 3PL Links to keep supply chains moving efficiently.

Cross-Border & Compliance Support

For businesses shipping across borders, 3PLs play a key coordination role, even when customs brokerage is handled separately.

This support may include:

• Coordinating customs clearance timelines

• Ensuring documentation accuracy

• Aligning transportation schedules with border requirements

• Managing bonded or pre-cleared freight

Experienced 3PL providers like 3PL Links help reduce border delays through planning, visibility, and coordination across all parties involved.

Temperature-Controlled & Specialized Logistics

Some products require specialized handling, including:

• Refrigerated and frozen storage

• Temperature monitoring and compliance reporting

• Food-grade handling procedures

• Regulated or sensitive product storage

Businesses in food, beverage, and regulated industries often rely on specialized 3PL partners such as 3PL Links to maintain product integrity throughout the logistics process.\

Technology, Visibility & Reporting

Modern 3PLs use technology to manage operations and provide transparency, including:

• Warehouse management systems (WMS)

• Transportation management systems (TMS)

• Real-time tracking

• Inventory dashboards

• Performance reporting and KPIs

Providers like 3PL Links use these tools to help businesses make informed decisions and continuously improve logistics performance.

What a 3PL Does Not Do

It’s just as important to understand what a 3PL typically does not handle:

• Manufacturing

• Sales or demand generation

• Product pricing or design

A 3PL focuses on logistics execution, while offering operational insights that support smarter supply chain decisions.

Why Businesses Choose a 3PL

Companies partner with 3PLs to:

• Scale without investing in infrastructure

• Reduce logistics complexity

• Access experienced networks and systems

• Improve service levels

• Control operational costs

For many growing businesses, working with a reliable provider like 3PL Links is the most practical way to move from reactive logistics to structured, scalable operations.

Final Thoughts

A 3PL is more than a warehouse or transportation provider, it’s a critical link that connects freight movement, storage, and distribution into one system.

Understanding what a 3PL actually does helps businesses:

• Choose the right logistics partner

• Set realistic expectations

• Avoid operational gaps

• Build a more resilient supply chain

For companies looking to simplify logistics and scale efficiently, partnering with an experienced 3PL such as 3PL Links can make a measurable difference.