Logistics & Trade · Definition

Third-Party Logistics

Outsourcing warehousing and distribution to a specialist provider.

A third-party logistics provider stores, picks, packs and ships your goods from their facilities using their staff and systems. You keep ownership of the stock and the customer relationship.

It converts fixed warehouse cost into variable cost and buys immediate geographic reach. The trade-off is dependence on their system for stock visibility, which makes data integration the make-or-break detail.

Also called