Glossary
3PL (Third-Party Logistics)
Definition
An external provider that stores your stock and fulfils your orders — receiving, storing, picking, packing and shipping on your behalf.
Using a 3PL removes warehouse operations but not inventory responsibility. You still need to know what is held where, and to reconcile the 3PL's reported stock against your own ledger.
Treat each 3PL location as a warehouse in your system, with its own stock, so allocation and availability stay accurate.
Related terms
- Marketplace fulfilment (FBA / FBF)A model where the marketplace stores your stock in its own warehouses and fulfils orders for you, in exchange for storage and fulfilment fees.
- Warehouse Management System (WMS)Software that manages the physical movement of stock inside a building: where it is stored, how it is picked, how it is packed and how it leaves.