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Third-Party Logistics

Feb 10, 2023

Is your growing company in need of distribution, warehousing, or order fulfillment solutions? 

With a third-party logistics (3PL) partner, you can benefit from numerous logistic solutions regardless of the size of your business. 3PL is a system where a third-party organization provides a company inventory management and distribution services. The companies that seek our 3PLs usually have little to no logistic solutions within their business model, which is why they turn to another company for assistance. 

In 2019, the global 3PL market was valued at $1,027.71 billion and is expected to reach $1,789.94 billion by 2027 (Source).

Throughout this article, we will cover what 3PL can do for your business and how to select the right solution for your needs. 

What is Third-Party Logistics?

3PL is when a company uses a third-party business to outsource its distribution, warehousing, or order fulfillment services. 3PL providers specialize in warehousing and transportation services that can be scaled or changed based on the needs of the business they are servicing. 

The services provided by 3PL partners go beyond logistics, such as supply chain management, warehousing, transportation, acquiring of goods, and more. 

Some of the activities carried out by the third-party logistics are:

  • Supply chain management
  • Technology integration
  • Inventory storage
  • Freight forwarding
  • Shipping and distribution
  • Load management & dispatch
  • Warehouse and inventory management
  • Customs clearance/declaration
  • Packaging and warehousing
  • Transportation management

The Benefits of 3PL in Supply Chain Management

To better illustrate the advantages 3PL providers can have on your business, we have highlighted some of the more notable benefits they can have on your business. 

Save on Time

Because 3PLs take over transportation operations and some management functions, companies save time they would otherwise be spending on managing their supply chain. On top of manual labour being greatly reduced, you will also save time on automated paperwork, arranging shipments, and more thanks to their integrated technology. 

Save on Costs

3PL firms have an extensive network of warehouses and logistic solutions. They also typically have exclusive relationships within the logistics sector, more influence while negotiating deals, and more significant volume discounts to clients. When you partner with a 3PL, you will also have access to all of these cost-cutting advantages. 

Also, when partnering with a 3PL, you will save on infrastructure investments as they provide warehouse space, transportation, staff, inventory management, and more.


3PLs network of warehousing and logistics solutions and their expertise and experience allow them to modify each part of the supply chain to improve overall optimization. When outsourcing your logistics and storage needs to a 3PL, you benefit from this constant growth and improvement. 3PL will analyze your supply chain, searching for any inconsistencies or flaws so they can provide optimal solutions.

Expertise and Experience

3PLs have extensive knowledge and experience with things like import and export, transport documentation, economic regulations, international compliance, and more. If you plan to expand your business to global markets, you will benefit significantly from the logistics support and knowledge they can provide. Also, this additional assistance will reduce costly delays, cut down the cycle time, and make entering a new region much more efficient. 

Flexibility and Scalability

When working with a 3PL, you can use their logistics and storage solution to match your business’s needs. Whether you need to vastly change the solutions your business needs or have the services match the growth of your business, 3PL will provide a generous amount of flexibility and scalability. This flexibility will also help you save money as you won’t need to pay for solutions your business is not using when business isn’t as favourable as usual. 

Customer Satisfaction

With all of the previously mentioned benefits provided by a 3PL partnership, your supply chain will run significantly faster and more efficiently, greatly improving delivery times and brand reliability, leading to much higher customer satisfaction. 

Selecting the Right Third-Party Logistics Partner for Your Business

When choosing the right 3PL partner for your business, you first need to analyze your business’s needs before deciding. Here are some of the things you look over before deciding:

  • Find out which 3PL services you require, the expected results, and what logistical responsibilities will remain in-house.
  • Have an internal team that works with the 3PL partner to ensure that operations are running to your business’s specifications. 
  • Ensure that the 3PL provider is capable of scaling with your business. 
  • Check if the 3PL provider offers customizations so the solutions you are receiving work well with your business. 
  • Do you want the 3PL to focus on each supply chain section or focus on a single area? There are general 3PLs that focus on the entirety of the supply chain and niche 3PL providers that focus on a single segment.  

A 3PL partnership is excellent for companies of all sizes that require additional assistance with storage and logistics. This partnership can help your business enter a new region, optimize your supply chain, provide quicker deliveries and more, all while saving you money.

At Flex Space Logistics, we are partnered with a vast network of 3PL providers across Canada, offering solutions for any logistics or storage needs your business may have. We ensure that your product is delivered and stored with care so you can get back to the more essential parts of your business. 

If you’d like to get started, get a quote today, or contact one of our FlexSpace Logistics advisors to find the right solution for your business at 1-844-985-3539.

Table of contents
Third-Party Logistics
Warehousing and Logistics Industry Outlook 2022

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