3rd Party Logistics (3PL)

What is 3rd Party Logistics (3PL)?

Operations

A 3PL, or third-party logistics provider, is a company that offers outsourced logistics services to businesses that need to manage their supply chain operations more efficiently.

A 3PL typically provides a range of logistics services, including transportation, warehousing, inventory management, order fulfillment, and freight forwarding, among others. These services can be tailored to meet the specific needs of a business and are often provided on a contract basis.

By outsourcing their logistics operations to a 3PL, businesses can focus on their core competencies while leaving the complexities of logistics to a specialized provider. 3PLs can also provide cost savings and improved efficiencies by leveraging their expertise and economies of scale to optimize logistics processes.

More Terms

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Customer Lifetime Value (CLV)

What is Customer Lifetime Value (CLV)?

Customer Lifetime Value (CLV) represents the total funds a consumer spends at a business for products and services without any specific time measurements restricting the data.

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Comma Separated Values (CSV)

What is Comma Separated Values (CSV)?

Comma Separated Values (CSV) is a file format commonly used for storing and exchanging tabular data between different software applications.

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Enterprise Resource Planning (ERP)

What is Enterprise Resource Planning (ERP)?

ERP stands for "Enterprise Resource Planning". It is a type of software system that allows businesses to manage and integrate their core business processes, such as accounting, procurement, inventory management, human resources, customer relationship management, and more.