What Is Warehouse 3PL?

warehouse 3pl

Warehouse 3PL | The term warehouse is generally used to describe the operations involving receiving, storing and transporting goods, or their components, back to the customer. Warehousing is a major component of the supply chain and an integral part of logistics, supply chain management and strategic planning. It is essential to the smooth operation of almost any business and its ability to meet demand. The concept of warehousing originated from shipping services that were operated by shipyards. The first major improvement to warehousing was in 1849, when the New England Railroad provided a warehouse for the railroads’ operations.

What Is Warehouse 3PL?

Today, there are many different warehouses to choose from such as general purpose, specialty, general-utility, single aisle, full-service, industrial, office, warehouse, and single aisle, among others. If you have your own warehouse that you need to rent or buy, it is important that you consider 3PL, which stands for 3-point locker, or point of sale system. In this case, the warehouse can offer storage, transportation, receipt, inventory, and payment services to the customers. The storage and transportation services are for individual customers, while inventory and payment services are offered to multiple clients. In addition to these three services, the warehouse can also act as a clearinghouse for receiving and sending incoming shipments and supplies to the customers.


However, 3PL warehouses are different from traditional warehouse facilities. In a 3PL warehouse, the main function is to act as a distribution center for receiving and distributing goods to the customers. Instead of storing products in inventory, the warehousing facility is fully equipped to receive and distribute goods and products to the customers. This is achieved through efficient automation of the warehouse’s processes, better access to the inventory, reduction of costs through automation and utilization of available space and employee capacity, among other benefits.

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