What they do
Warehousing, transport, fulfillment
3PLs handle some or all logistics functions so shippers can focus on their core business.
Freight Glossary
Third-Party Logistics (3PL)
Third-party logistics (3PL) is the outsourcing of supply chain operations to an external provider. A 3PL can manage warehousing, transportation, order fulfillment, freight brokerage, or any combination of logistics functions on behalf of a shipper. The 3PL model ranges from basic freight arrangement to fully integrated supply chain management where the provider operates warehouses, manages inventory, and handles returns.
Why it matters
Using a 3PL lets shippers scale logistics operations without building internal infrastructure. A growing brand can access warehouse space, carrier networks, and technology platforms through a 3PL instead of leasing facilities and hiring operations staff. The tradeoff is less direct control and potential misalignment between the 3PL incentives and shipper priorities. Many 3PLs earn margin on carrier rate arbitrage, which means their cost optimization may not align with the shipper getting the best possible rate.
When to use it
Consider a 3PL when your logistics needs exceed your internal capacity but do not justify building your own operations. This typically happens when you are shipping more than 50 orders per day, expanding into new markets, or when logistics complexity is distracting from your core business. Evaluate 3PLs on their technology integration, carrier network quality, and transparency on pricing. Avoid 3PLs that will not share the actual carrier rates they are paying on your behalf.
How Warp thinks about it
Warp is not a traditional 3PL. Warp operates its own freight network with owned cross-docks, a managed carrier fleet, and proprietary technology. This means there is no rate arbitrage layer between you and the actual cost of moving freight. Shippers get transparent per-pallet pricing, direct access to the network, and real-time visibility without the information asymmetry that characterizes most 3PL relationships. For shippers currently using a 3PL for freight, Warp offers a direct alternative that eliminates the middleman margin.
3PL
Third-party logistics providers manage supply chain operations on behalf of shippers.
The tradeoff
Less control, rate arbitrage risk
Many 3PLs earn margin by marking up carrier rates, creating misaligned incentives with shippers.
Warp alternative
Direct network, no middleman
Warp gives shippers direct access to freight infrastructure with transparent pricing and no rate arbitrage.