Third-Party Logistics (3PL) is a form of outsourcing in which a company (the “shipper”) contracts with one or more third-party logistics providers to handle some or all of its logistics operations, such as transportation, warehousing, and distribution. 3PL providers typically specialize in one or more logistics services and can offer shippers access to a wider range of expertise and resources than they would have on their own. 3PL companies can also help shippers to reduce costs and improve efficiency by leveraging economies of scale and taking advantage of their own logistics infrastructure and expertise.