Third-Party Logistics (3PL)

Third-party logistics, often shortened to 3PL, means that a company outsources all or part of its warehouse and logistics operations to an external service provider. This may include inventory storage, picking and packing, shipping, or returns handling. Instead of managing the physical handling of your products yourself, a professional logistics partner takes care of it – typically in combination with a warehouse management system (WMS) that ensures everything runs efficiently and in a structured manner.

Rackbeat December 12, 2025

What Does a 3PL Provider Do?

A 3PL provider typically offers the following services:

  • Receiving and warehousing
    Goods are delivered directly to the 3PL’s warehouse, where they are registered and stored.

  • Pick and pack
    When an order comes in, the 3PL partner picks the goods from the shelves, packs them, and prepares them for shipment.

  • Shipping and transport
    Your logistics partner usually has good agreements with carriers and selects the most efficient delivery method.

  • Returns handling
    Returned goods are received, inspected, and restocked if they are still sellable.

  • Tracking and reporting
    Most 3PL partners offer digital access to order and inventory data – often through their own WMS – so you can monitor activity in real time.

What Are the Benefits of Third-Party Logistics?

For many businesses – especially webshops and growing companies – 3PL is a smart, scalable solution that offers several advantages:

  • Reduces the need for your own warehouse and staff
    You avoid investing in your own facilities, hiring warehouse staff, or purchasing your own WMS. The logistics partner handles everything for you.

  • Scales with your business
    Experiencing a sudden surge in orders? A 3PL setup can handle peak periods and business growth without you having to restructure internally.

  • Gives you more time to focus on your core business
    By outsourcing logistics, you can focus on product development, marketing, customer service – or growing your business – rather than packing boxes.

  • Streamlines delivery and returns
    With a professional logistics partner and a reliable WMS, errors are reduced, delivery times are shortened, and your customers enjoy a smoother experience – even when returning products.

How Does 3PL Integrate with Rackbeat?

When using 3PL, it’s crucial that your inventory management system can integrate seamlessly with your logistics partner’s systems. This is where Rackbeat comes in – a flexible, user-friendly WMS that connects directly to your 3PL provider.

With Rackbeat, you get:

  • Integration with 3PL providers
    Order and inventory data are automatically synchronized between you and your logistics partner – saving time and reducing manual errors.

  • Real-time visibility into inventory movements
    No matter where your products are physically stored, you can track inventory status and order flow in Rackbeat – allowing you to make informed decisions.

  • Automated order flow
    Whether it’s a webshop order or a B2B sale, Rackbeat sends the order information directly to your 3PL provider, so fulfillment happens fast – without manual input.

In short, you get the best of both worlds: outsourced logistics with full control and transparency through your WMS.

When Does It Make Sense to Use Third-Party Logistics?

3PL is especially beneficial if you:

  • Are growing and struggling to keep up with logistics
    A 3PL solution gives you the capacity to grow without needing to expand your own warehouse facilities.

  • Run a webshop and want a digital, scalable setup
    Outsourcing storage and logistics allows you to run your business flexibly – without being physically tied to a warehouse.

  • Experience seasonal fluctuations in demand
    3PL gives you access to extra resources when you need them most – without locking you into fixed costs long-term.

  • Want to reduce fixed costs and avoid tying up capital in warehouse infrastructure
    You only pay for the space and services you use, and you avoid investing in your own systems and facilities.

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