What is 3PL logistics?

Published on:

26 March 2025

Written by:

Klaas-Jan den Hertog

In the rapidly evolving world of logistics, more and more companies are choosing to outsource in order to make their processes more efficient, scalable, and flexible. One of the most popular models within this trend is 3PL Logistics, or Third Party Logistics. But what exactly is 3PL? In short, it means outsourcing your logistics activities — such as transportation, warehousing, and order fulfillment — to an external party: a 3PL partner.

For organizations looking to professionalize their logistics operations or avoid investing in warehouses, personnel, and transportation assets, 3PL in the Netherlands is a logical step. In this article, we explain what 3PL involves, the meaning of 3PL, how it differs from other models like 2PL and 4PL, and when it is the right choice.

What Does 3PL (Third Party Logistics) Mean?

3PL, also known as Third-Party Logistics or 3rd Party Logistics, refers to a logistics model in which an external service provider is responsible for multiple parts of the logistics process. This may include warehousing, order fulfillment, picking and packing, and handling returns.

Unlike 2PL, where only transportation is outsourced, a 3PL partner plays a much larger role. As a company, you remain strategically responsible, but the execution from warehouse to end customer is handled by the 3PL logistics provider.

Difference Between 2PL and 3PL Logistics

The difference between 2PL and 3PL lies in the level of outsourcing. With 2PL, you only outsource transportation, while warehousing and order processing remain in-house. With 3PL, transport, storage, and fulfillment are fully managed by a third party.

Comparison Table:

Aspect	2PL	3PL
Warehousing	In-house	Outsourced to 3PL partner
Transport	Outsourced to carrier	Outsourced to 3PL partner
Order Processing	In-house	Outsourced to 3PL partner
External Partners	Only for transport	For transport, warehousing, returns
Control	Partial	More outsourced, less internal

Real-World Examples of a 3PL Approach

A 3PL approach is ideal for companies that want to scale quickly or lack internal capacity for complex logistics operations. Think of e-commerce companies, retailers, and manufacturers with national or international distribution.

Examples of 3PL Logistics in practice:

Outsourcing storage to a 3PL warehouse
Order picking and shipping handled by the 3PL partner
Return handling and customer service related to deliveries
Inventory management via integrated IT systems

Difference Between 3PL and Other Models (1PL, 2PL, 4PL)

The chart below shows how 3rd party logistics compares to other models in the supply chain. Each level represents a different degree of outsourcing and control:

Logistics Model	Who Does the Work?	Example Activity
1PL	You	Production, warehousing, transport
2PL	External carrier	Transport with hired drivers
3PL	External logistics provider	Transport, storage, order processing
4PL	Supply chain orchestrator	Full chain coordination and optimization

Curious about the other models? Read our blogs on 1PL, 2PL, and 4PL logistics.

3PL Management: Strategic Control of Logistics Performance

With 3PL management, your company remains in control of the strategic direction, while the 3PL provider takes care of the execution. This means you no longer need to manage warehouse space or transportation, but you do manage quality, delivery times, and customer satisfaction.

Your role in 3PL Logistics:

Define KPI’s and SLA’s
Monitor the performance of your 3PL partner
Set strategy and scale where needed

Benefits of 3PL Logistics

Complete logistics relief
Economies of scale through shared infrastructure and capacity
Fast implementation of fulfillment and distribution
Focus on core activities like sales and product development
Access to advanced technology (WMS, tracking, data insights)

Potential Drawbacks of 3PL

Less direct control over operations
Greater dependency on external partners
Need for clear agreements and strong contract management

Working with E. van Wijk Logistics as a 3PL Partner

When choosing Third Party Logistics, selecting the right partner is crucial. E. van Wijk Logistics is an experienced 3PL partner in the Netherlands, helping businesses fully outsource their logistics operations.

What can E. van Wijk Logistics offer you within a 3PL model?

Transport services across the Netherlands and Europe
Warehousing including inventory management, cross-docking, and fulfillment
Order processing and returns management
Scalable solutions for seasonal peaks or growth
Integrations with your systems for real-time insights

With E. van Wijk, you have a partner who supports every stage of the logistics process from inbound goods to final delivery. We handle the execution – you retain control. Exactly as effective 3PL management should be.

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