What Is 3PL Warehousing?

by Michael Kotendzhi | Warehousing
What Is 3PL Warehousing

3PL is an industry abbreviation for “third-party logistics.” Warehousing is the storage often necessary during the shipping process. So, 3PL Warehousing is when a company uses an outside shipping and logistics company to provide the needed warehousing in order to ship its product efficiently and cost-efficiently.

When a company needs to transport its product to the end user or to a retailer, often there are delays and the product needs to be stored for some period of time. The storage in a warehouse is not as simple as it may appear. The warehouse must have space, the space must be secure, space may or may not need refrigeration. The company operating the warehouse needs equipment to move the product around safely and efficiently and also needs to be able to keep careful inventory of what is on site.

These warehousing requirements require skill, staff, equipment, and experience which not all companies have. If a company wants to concentrate on producing their product, it may be much more cost efficient to outsource this particular need.

Some third-party shipping and logistics companies can also offer warehousing and other services. If your company produces a product, you may not want to devote the time and money needed to make your own warehousing efficient. You may be much better off letting your 3PL company handle warehousing in addition to the shipping. A 3PL company offering warehousing will have all kinds of demonstrable controls in place to operate as efficiently as possible.

If your business needs 3PL warehousing, definitely talk to us, as this is our area of expertise.

For over 30 years, 18 Wheels Logistics has strived to be the most customer-centric trucking, warehousing, and logistics company around. Based in Vancouver, British Columbia, Canada, 18 Wheels relies on experience and integrity to make customers happy and remain on the cutting edge of shipping and logistics management.

If you have any questions about this article or you would like to talk to us about your shipping needs, please call us at (604) 439-8938.

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.