Logistics & Fulfilment

Third-party Logistics (3PL)

Also known as: 3PL

Third-party logistics (3PL) is the outsourcing of warehousing, transport and fulfilment activities to a specialist external provider.

A 3PL provider handles logistics functions on a business's behalf — storing stock, picking and packing orders, arranging transport and managing deliveries — so the business can focus on its core activities. It lets companies scale distribution without investing in their own warehouses and fleets.

The trade-off is less direct control over the customer's delivery experience. Some operators choose instead to own their logistics: a marketplace that runs its own warehouses and delivery fleet across Peninsular Malaysia keeps fulfilment accountability in-house rather than relying on a 3PL, which can make service more predictable.

Frequently asked questions

What is third-party logistics?
Third-party logistics (3PL) is outsourcing warehousing, transport and fulfilment to a specialist provider, letting a business scale distribution without owning its own warehouses and fleet.
What is the difference between 3PL and in-house logistics?
With 3PL, an external provider runs your logistics; with in-house logistics you own the warehouses, staff and vehicles. In-house gives more control over delivery, while 3PL offers flexibility without heavy capital investment.

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