Third party logistics (3PL) companies allow you to outsource operational logistics, warehousing, picking, packing, order fulfillment, shipping, and reverse logistics (returns) to a third-party provider. There are two main types of 3PL services: raw materials warehousing for manufacturers (supply warehouse) and 3PL fulfillment centers dedicated to order fulfillment of finished or consumer goods primarily for online retailers (B2C).
In the case of 3PL logistics for manufacturers, outsourcing supply warehousing to a 3PL services company is a cost saving strategy that frees up production space by reducing warehousing needs at more expensive industrial sites, as well as reducing overhead costs such as staffing. Sometimes this is called third party warehouse management.
Using a full service 3PL company for e-commerce and online retailers, also called 3PL e-commerce fulfillment or a 3PL distribution services, is also used as a cost saving strategy. Third party logistics warehouses are designed to maximize speed and efficiency, minimize or eliminate the need for investing in warehousing space or your own staff, and in many cases can often reduce your shipping costs and delivery times.
Co-Production International offers 3PL logistics services to retailers and e-commerce businesses on the U.S.-México border allowing your company to take advantage of the affordable labor rates, lower cost warehousing space in Mexico, duty-free options for online retailers, and proximity to the United States.