Firms often outsource logistics functions to third-party logistics providers (3PL) because of their expertise and ability to provide cost savings to the firm.

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Third-party logistics providers (3PL) are specialized companies that offer logistics and supply chain management services to support businesses in various industries. Due to their expertise and economies of scale, 3PLs can help firms reduce their logistics costs and improve service quality. Therefore, outsourcing logistics functions to 3PLs is a common practice among companies worldwide.

Firms Often Outsource Logistics Functions to Third-Party Logistics Providers (3PL)