Directory of 3RD party Logistics companies

For people new to the supply chain management and logistics industry, the term “3PL” is likely an unfamiliar term. This is certainly not surprising as every industry always has their own set of acronyms and buzz words, but I’d like to provide some clarity to the commonly asked question, What is a 3pl?

Picture of a warehouse, What is a 3PL

While it isn’t immediately clear exactly who coined the term 3pl, its beginnings can be traced to the 70′s and 80′s as companies outsourced more and more logistics services to 3rd parties. Over time these 3rd party logistics service providers (3PLs) expanded their services to cover specific geographies, commodities, modes of transport and integrated their existing warehousing and transportation services, becoming what we now know today as a “3PL”

If there was any one moment that paved the way for the creation and growth of the 3PL industry it was the of the 1980’s. More specifically it was the Motor Carrier Act of 1980 that limited the Interstate Commerce Commission’s authority over trucking which had previously heavily regulated rates and made it near impossible for newcomers to start companies in the trucking industry. With the exception of a few companies with degrees of integration, for the most part the industry was very separated. There were trucking companies, the railroads and then there were storage companies. With trucking deregulation, companies that had previously been in warehousing were given more freedom to move into freight management, and increased competition in trucking moved some trucking companies into warehousing as well.

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Q&A

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Which companies offer third party logistics?

There are many companies and websites that offer third party logistics for those that need it. Some of these companies that offer third party logistics are Genco and 3PL.