Shipping goods from one place to another might seem straightforward, and often times the freight is literally moving from point A to point B. But, behind the scenes, it involves a complex web of coordination, timing, and decision-making. If you’re a business owner or operations manager just starting to explore how to move your products, you may be wondering: How does it all work? And more importantly, who can help?
That’s where Third Party Logistics companies come in.
A Third Party Logistics provider (3PL) is a company that manages the logistics and transportation needs of other businesses. Instead of operating their own trucks or warehouses, these providers act as intermediaries between shippers (the companies that need goods transported) and carriers (the companies that do the transporting). But their role in the supply chain goes far beyond simple matchmaking.
What Do Third Party Logistics Companies Do?
Third Party Logistics companies offer a wide range of services that streamline transportation and reduce the burden on internal teams. Here are some of the core responsibilities a 3PL typically handles:
- Carrier Procurement and Rate Negotiation: 3PLs maintain strong relationships with a broad network of carriers. They know which carriers are reliable, what equipment they offer, and how to secure competitive pricing. This ensures that shippers get both cost-effective and dependable transportation solutions.
- Freight Scheduling and Coordination: From pickup to delivery, 3PLs manage the logistics calendar. They schedule shipments according to customer needs, carrier availability, and delivery deadlines, ensuring everything runs on time with minimal disruption.
- Shipment Tracking and Visibility: Most 3PLs use advanced track-and-trace technology to monitor shipments in real time. This allows customers to know where their freight is at any given moment, providing transparency and enabling better decision-making.
- Issue Resolution and Contingency Management: Delays, traffic, weather disruptions, or unexpected carrier issues can all affect shipments. A 3PL doesn’t just identify problems, they resolve them quickly by leveraging their carrier relationships, internal resources, and experience.
- Freight Bill Auditing and Documentation Management: A 3PL handles the paperwork, everything from bills of lading and proof of delivery to customs forms and compliance documentation. They ensure billing is accurate and that records are properly maintained.
- Mode and Route Optimization: Depending on the size, type, and urgency of a shipment, 3PLs can recommend the best mode of transportation, whether full truckload, LTL, intermodal, or expedited. They also analyze routes for efficiency, which helps reduce transit times and costs.
- Custom Reporting and KPI Tracking: Many 3PLs provide performance reporting tailored to the shipper’s needs. These insights include delivery performance, cost per shipment, and other logistics KPIs that help businesses evaluate and improve their shipping strategies.
These services are designed to provide a full-service logistics solution that frees businesses from the day-to-day tasks of freight management while improving results across the board.
Who Uses Third Party Logistics Services?
Third Party Logistics providers serve a wide range of roles within the supply chain. While their core function is managing freight movement, their value extends to multiple players that rely on seamless transportation and coordination.
Shippers: From Delivery to Returns
Shippers are the businesses that need to move goods, manufacturers, distributors, retailers, and eCommerce companies. These businesses turn to 3PLs to manage everything from sourcing carriers and booking shipments to tracking deliveries and resolving delays.
Whether moving raw materials to a plant or finished products to customers, shippers benefit from the 3PL’s ability to scale services and offer real-time visibility. A strong 3PL partner helps shippers reduce transportation costs, improve delivery performance, and focus on core operations instead of freight management.
3PLs also support reverse logistics which is the return flow of products due to returns, recalls, or recycling. Efficient reverse logistics is especially important in retail and eCommerce, where customer satisfaction depends on a smooth, cost-effective returns process.
Carriers: Steady Freight and Reliable Support
Carriers rely on 3PLs for consistent freight opportunities. A 3PL serves as a key link to shippers, helping carriers keep their trucks full and routes efficient.
Beyond load volume, carriers benefit from simplified communication, faster payment options, and access to digital tools for document submission and tracking. A strong relationship with a 3PL can lead to repeat business, less downtime, and better operational efficiency.
Other Supply Chain Partners
3PLs also work closely with other supply chain players. Warehousing companies depend on 3PLs to coordinate inbound and outbound freight. Meanwhile, eCommerce businesses use 3PLs to manage order fulfillment and last-mile delivery. Even procurement teams and operations managers partner with 3PLs to improve logistics planning, control costs, and meet tight delivery timelines.
Ultimately, any business involved in the production, storage, or sale of goods can benefit from the expertise and flexibility of a Third Party Logistics provider.
Where Do 3PLs Fit in the Supply Chain?
The supply chain includes every step involved in producing and delivering a product: sourcing materials, manufacturing, warehousing, and distribution. A Third Party Logistics provider typically comes into play during the transportation and distribution phases.
By managing freight movements between suppliers, factories, warehouses, distribution centers, and final destinations, 3PLs act as a vital connector in the supply chain. They provide coordination and visibility that keeps things moving smoothly, even when disruptions occur.
Modern 3PLs also offer digital tools that allow businesses to track freight in real time, monitor key performance indicators, and make proactive decisions based on data. This improved visibility supports better planning and customer satisfaction.
Why Are Third Party Logistics Services So Valuable?
The real value of working with a Third Party Logistics company lies in the combination of cost savings, efficiency, and peace of mind. Businesses don’t need to invest in their own fleet or logistics team. Instead, they gain access to a flexible, experienced partner that can handle shipping needs at any scale.
With a 3PL managing transportation, companies can avoid costly delays, reduce the risk of errors, and stay focused on their core operations. The provider takes on the responsibility of scheduling shipments, solving problems, and ensuring compliance with shipping regulations.
Technology is another major advantage. Many 3PLs offer real-time tracking, automated billing, and digital freight management systems. These tools simplify the process, reduce manual errors, and create transparency across the supply chain.
Most importantly, a good 3PL becomes an extension of your business. They don’t just move freight—they actively support your goals, helping you grow, adapt, and deliver with confidence.
Choosing the Right Third Party Logistics Partner
Finding the right 3PL starts with understanding your own shipping needs. Do you require temperature-controlled transportation? Do you ship full truckloads, partials, or LTL freight? Are you managing seasonal spikes or recurring routes?
Look for a Third Party Logistics provider with experience in your industry, a strong carrier network, and the tools to provide visibility and reporting. A trusted 3PL should be responsive, proactive, and capable of customizing their services to fit your operation.
At Becker Logistics, we’ve been providing trusted 3PL solutions since 1997. Our team works around the clock to ensure every shipment is handled with care, efficiency, and clarity. With access to advanced shipping technology, a national network of carriers, and a deep understanding of diverse industries, we help businesses move freight smarter.
If you’re exploring how to simplify your logistics and take the guesswork out of shipping, a 3PL partnership might be your best next move. Let’s talk about how Becker Logistics can support your supply chain today and into the future.
