Many companies needing to fulfill orders choose to outsource this process to a third party logistics company. 3PL providers can often provide this service cheaper and more efficiently than the business itself can which makes them attractive to companies large and small alike. These advantages come primarily from volume, shared infrastructure, and experience. 3PL providers specialize in some aspect(s) of logistics and therefore tend to have deeper expertise in their link in the supply chain which leads to less mistakes and higher efficiency. Additionally, because a third party logistics provider is not often exclusive to one client, which means the investment in infrastructure is spread thin over time between many clients and cheaper for everyone. In-exclusivity also means clients share the cost of labor which shrinks with the efficiency and volume of a 3PL provider.
