The term 3PL often gets thrown around in the shipping industry, but what exactly does it mean? 

3PL stands for third-party logistics. It can refer to the practice of outsourcing a business’s distribution services, but a 3PL can also be the organization itself that is responsible for overseeing another business’s supply chain. 

What is the Importance of 3PLs?

Many businesses turn to 3PLs when they can no longer handle their in-house operations because it’s become too expensive or the volume of shipments is too high. When they hand the reins over to a 3PL, they can focus more on other elements of operating their businesses. 

Basically, 3PLs are outsourced shipping and fulfillment experts who help manage a business’s logistic operations, as they cover a wide range of distribution services, from storing inventory and processing orders to packing products and shipping orders to customers. They make sure that order fulfillment runs smoothly from start to finish while striving for speed and efficiency. 

What Services Do 3PLs Provide?

In short, 3PLs cover the ins and outs of order fulfillment. 

Some examples of 3PL responsibilities include:

  • Storing and organizing inventory at an off-site warehouse or fulfillment center
  • Scheduling inventory orders
  • Accepting orders and picking the products from the warehouse
  • Securing and packing products
  • Printing shipping labels
  • Transporting products to their final destination
  • Overseeing returns
  • Restocking inventory
  •  

What does Falvey provide for 3PLs? 

Our fully developed Application Programming Interface (API)—seamlessly integrates with all types of shipping software.

Our plug-and-play shipping insurance widget is installed right alongside your shipping form, so you can avoid the hassle of re-keying data multiple times across multiple views or platforms. To help ensure a smooth process, Falvey offers our clients complete, 24-hour technical support free of charge. And all-risk shipper’s interest coverage is available even without integration.

When it comes to insurance, Falvey Insurance Group offers All-Risk Shipper’s Interest Insurance benefits for 3PLs, which includes door-to-door coverage against all risks of physical loss and damage.

Contact us today to learn more!