What is a 3PL Provider? How They Improve Your Fulfillment Strategy

Beeontrade · June 2025
6 min read

From the Editor’s Desk

As logistics complexity grows, more businesses are turning to 3PL (third-party logistics) providers for support. From shipping coordination to warehouse management, 3PLs offer scalable freight and forwarding services tailored to modern fulfillment demands.

In this article, we’ll break down what 3PL providers do, how they reduce operational burdens, and why they’re essential for companies seeking flexibility, visibility, and cost control in their shipping logistics.

Key Takeaways & Observations

Logistics Outsourcing Trends

• Over 80% of U.S. eCommerce brands partner with 3PLs to manage fulfillment and shipping.
• 3PLs offer modular services, allowing brands to outsource what they need—when they need it.

Cost & Speed Benefits

• Using a 3PL can reduce fulfillment costs by up to 25% through volume consolidation and carrier contracts.
• Regional 3PL networks improve 2-day delivery coverage without increasing warehouse spend.

Freight Coordination & Visibility

• Modern 3PLs provide real-time dashboards and EDI/API integration for end-to-end shipment tracking.
• Advanced partners also manage customs clearance and international freight forwarding services.

What Does a 3PL Provider Do?

Core Services Offered

3PL providers manage one or more aspects of your supply chain. Their services typically include warehousing, pick/pack fulfillment, shipping coordination, inventory management, and returns handling.

Types of 3PL Services

• Inbound logistics – freight receiving and customs coordination
• Storage & handling – warehouse services and order prep
• Last-mile fulfillment – shipping label generation and delivery routing

Difference Between 3PL and 4PL

While 3PLs handle logistics execution, 4PLs serve as strategic managers across multiple providers. Most companies start with 3PLs for operational relief and expand into 4PL oversight as they scale.

Why Use a 3PL? Strategic Advantages

Flexibility for Fast-Growing Brands

3PLs scale up or down with your order volume. During peak seasons, you gain additional labor and carrier access without investing in your own facilities.

Improved SLA Performance

Through distributed warehouse networks and intelligent shipping routing, 3PLs help brands meet aggressive SLAs with reduced error rates and faster delivery windows.

Lower Costs Through Freight Consolidation

By bundling shipments from multiple clients, 3PLs negotiate better freight rates. These cost efficiencies are passed on to you, especially when shipping internationally or managing returns.

Case Snapshot: 3PL Cost Reduction

A beauty brand reduced shipping costs by 22% and cut fulfillment delays by 30% after switching to a tech-enabled 3PL with a West Coast DC.

3PL Technology: Visibility and Control

Integrated Logistics Platforms

Leading 3PLs offer WMS-integrated portals that connect with your eCommerce platforms, CRMs, and accounting systems—creating a real-time view of orders, inventory, and freight status.

Freight and Forwarding Visibility Tools

With API feeds from carriers and customs brokers, modern 3PL dashboards show where every shipment is—from origin to doorstep. Predictive ETAs and alerts make exception management easier.

Custom Rules for Fulfillment Strategy

3PLs allow businesses to set rules around inventory replenishment, order batching, and returns handling—all tailored to your customer promise and margins.

Performance Tracking with KPIs

Providers supply detailed metrics like pick accuracy, delivery time, inventory turns, and cost per shipment—helping you refine fulfillment strategy continuously.

Beeontrade’s Perspective

At Beeontrade, we work with modern 3PL partners who bring tech, transparency, and precision to freight and forwarding services. Whether you’re a fast-scaling brand or optimizing legacy logistics, our integrated approach ensures you stay agile and in control. Unlock your 3PL strategy with Beeontrade →

Sources

• Third-Party Logistics Study by NTT Data – 3plstudy.com
• FreightWaves Research – freightwaves.com
• Shopify Logistics Insights – shopify.com/enterprise/3pl
• Beeontrade Client Data – beeontrade.com