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What Are Third Party Logistics (3PL) & Why Do They Exist?

By: Katherine Perelas Feb 25, 2021 5:09:36 PM

Freight Carriers
What 3PLs Do
Simply defined, Third-party logistics (3PL) software manages outsource supply chain activities such as transportation and warehousing. Companies can work with 3PLs to manage warehouses and trucks for them. More specifically, 3PLs can plan, schedule, and monitor supply chain operations on behalf of their customers. Customers should also have access to the system, which improves transparency in their supply chain. In other words, 3PLs help lighten the workload of companies (carriers). They also improve transparency for customers (shippers).Admittedly, 3PLs can provide a handful of beneficial services. They can can pull rates from several of the same freight carriers you already use at one time, make transportation easier, take charge of global shipping logistics, and use information technology to manage various aspects of a business. Life working with a 3PL means additional expertise, saving time and money, and making scaling operations more scalable. 
Life Before 3PLs
Before 3PLs existed, shippers might have had to manually enter the origination, destination, and freight shipping information on six different platforms. It wasn't uncommon for shippers to hire trained employees who dedicate several hours a day to simply receive a rate quote. 
An Even Better Solution

While 3PLs have found solutions for some problems that shippers face, they also have created unique problems for both carriers and shippers. MyCarrier fixes these issues with a new model that takes all the benefits of a 3PL, but connects shippers directly with their carriers. MyCarrier is similar to the travel industry's Kayak, where you can view multiple carrier quotes and rates before conveniently booking freight from one easy-to-use website. Sign up here to ship your freight faster and easier today.

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