What Does a 3PL Company Actually Do? | Complete 2025 Guide

By Martin Vassilev / 11 Jul, 2025

Third-party logistics (3PL) companies have become essential partners for businesses navigating today’s competitive supply chain landscape. These providers handle the critical logistics operations—including warehousing, order fulfillment, shipping, and returns—allowing businesses to focus on growth and customer experience.

According to Investopedia, a 3PL company provides outsourced logistics services, encompassing anything that involves management of one or more facets of procurement and fulfillment activities.

Key Services Offered by a 3PL Company

Warehousing and Storage Solutions

3PL companies offer scalable warehousing solutions that help businesses avoid the burden of owning or leasing their own facilities. These services include:

• Inventory storage

• Real-time inventory tracking

• Warehouse optimization

• Pick-and-pack operations

Modern 3PL providers utilize advanced systems for real-time visibility. Companies like BYExpress excel in this by offering cutting-edge real-time tracking systems that reduce errors and improve performance.

Order Fulfillment Services

When a customer places an order, the 3PL company picks, packs, and ships the product on behalf of the business. This includes:

• Order management

• Packaging

• Shipping coordination

• Returns processing

Efficient fulfillment is essential for e-commerce. Learn more about this in our article on The Ultimate Guide to Fast Fulfillment, where we break down the speed and accuracy expectations in 2025.

How 3PL Enhances Supply Chain Performance

Streamlining Supply Chain Complexity

By acting as an intermediary between manufacturers and end customers, 3PLs simplify complex processes. Whether it’s last-mile delivery or managing bulk freight, they provide strategic solutions.

Our in-depth article on Optimizing Your Supply Chain for Global Challenges offers further insight into how businesses can stay resilient during unpredictable times by leveraging a 3PL.

Advanced Technology Integration

Today’s leading 3PL companies incorporate technologies like:

• Warehouse Management Systems (WMS)

• Transportation Management Systems (TMS)

• Real-time inventory updates

• API integrations with e-commerce platforms

Explore how AI is redefining the logistics sector in our post: How AI Is Transforming the Logistics Industry in 2025.

Benefits of Working with a 3PL Company

Cost Savings

Outsourcing logistics functions significantly reduces operational costs. Businesses can avoid expenses related to:

• Infrastructure investment

• Labor

• Transportation management

• Returns handling

For further cost reduction techniques, check out 5 Ways to Lower Shipping Costs Without Compromising Speed.

Scalability and Flexibility

3PL services are highly scalable, making it easier for businesses to expand into new markets or handle seasonal demand surges without investing in additional infrastructure.

Improved Customer Satisfaction

With faster delivery, accurate tracking, and smoother returns, 3PL companies help businesses enhance the customer experience—an essential differentiator in competitive markets.

When Should You Consider a 3PL Partner?

A 3PL partner is ideal for businesses that:

• Struggle with inventory management

• Experience frequent shipping errors or delays

• Want to expand geographically

• Are dealing with rising logistics costs

If any of these challenges sound familiar, it might be time to explore strategic outsourcing. See our guide on Why Outsourcing Warehousing Is More Cost-Effective Than In-House Management.

Real-World Applications and Case Studies

Many successful businesses, from startups to global brands, utilize 3PL services. Case studies have shown significant improvements in operational efficiency and customer satisfaction. Visit our article on Successful Warehousing Strategies from Industry Leaders for detailed examples.

The Role of 3PL in E-Commerce Fulfillment

E-commerce businesses are the biggest adopters of 3PL solutions. With consumers expecting fast, affordable shipping and hassle-free returns, 3PLs:

• Handle omnichannel fulfillment

• Integrate with marketplaces like Shopify and Amazon

• Manage peak demand periods

• Provide end-to-end visibility across channels

This is especially crucial for brands scaling fast. You may also be interested in The Benefits of Outsourcing Warehousing for E-Commerce Brands.

Third-Party Logistics vs. In-House Fulfillment

Explore our breakdown on Comparing In-House vs Outsourced Fulfillment to determine which model suits your business.

3PL and Global Logistics Capabilities

Many 3PL companies also handle international shipping, customs clearance, and global warehousing. This includes:

• Freight forwarding

• Documentation and compliance

• International tracking

• Customs brokerage

This level of expertise helps businesses scale globally with confidence. Refer to The Challenges and Solutions of International Shipping for more detailed guidance.

Key External Resources for Further Understanding

To deepen your understanding of logistics and 3PL:

• Council of Supply Chain Management Professionals (CSCMP) – for industry research and best practices.

• U.S. Department of Transportation – Freight Facts – for logistics data and freight analytics.

• Wikipedia: Third-party logistics – for a general overview and historical context.

Conclusion: Why 3PL is the Smart Choice for Modern Businesses

In today’s fast-paced environment, businesses can’t afford inefficiencies in their supply chain. Partnering with a capable 3PL company allows brands to:

• Focus on growth and core operations

• Deliver consistent customer satisfaction

• Adapt to changing market dynamics

Whether you’re an e-commerce startup or an established manufacturer, a 3PL partner could be the strategic advantage your business needs. If you’re ready to elevate your logistics operations, explore our comprehensive Fulfillment Process to see how BYExpress can support you.

For inquiries, tailored solutions, or to get started, don’t hesitate to Contact Us.