Utilizing a third-party logistics (3PL) provider to handle logistics tasks like packaging, warehousing, fulfilment, and distribution results in cost savings because you no longer need to maintain a warehouse or hire people to oversee supply chain activities, for example. A Third-party Logistics Market provider most likely performs better on tasks like shipping while also having an easier time scaling its business. A fulfilment centre will be better able to satisfy demand if the publishing business in the example above suddenly has to ship more copies of a popular title than if the publisher itself had to ship extra copies of the book. Most 3PL firms have agreements with additional freight and shipping providers and either own or lease the warehouse space they offer to their clients.
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