Logistics Services Explained: What to Expect From a 3PL

Outsourcing logistics can feel like handing over the keys to your business. Done well, a third-party logistics provider (3PL) reduces costs, improves delivery performance, and frees your team to focus on sales and product. Done poorly, it creates surprises: unclear invoices, inventory mismatches, delayed shipments, and customer complaints.

This guide breaks down the logistics services you can realistically expect from a 3PL, how the relationship typically works, what it costs, and what to look for before you sign.

What a 3PL is (and what it is not)

A 3PL is a company that performs logistics activities on your behalf, usually combining transportation management, warehousing, and fulfillment processes into one outsourced operation.

Industry groups like the Council of Supply Chain Management Professionals (CSCMP) use “3PL” as an umbrella term for outsourced logistics services. In practice, 3PLs range from warehouse-first fulfillment providers to global freight forwarders with integrated warehousing and customs.

What a 3PL is not:

• Not just a carrier (a trucking company or ocean line that only moves freight).

• Not automatically a 4PL (a lead logistics manager that orchestrates multiple providers and typically owns fewer physical assets).

• Not always the same as a freight forwarder, although many forwarders also offer 3PL services.

Here is a quick way to think about common roles:

Role	Primary focus	Typical services	Best fit when…
Carrier	Movement	Trucking, ocean vessel, aircraft capacity	You already manage routing, bookings, and paperwork
Freight forwarder	International transportation management	Air and ocean bookings, consolidation, documentation, customs coordination	You ship cross-border and need expertise and leverage
3PL	Outsourced logistics execution	Warehousing, fulfillment, transportation management, returns, value-added services	You want one partner to run day-to-day logistics
4PL	Strategy and orchestration	Multi-3PL management, network design, KPI governance	You need a “logistics general contractor”

Many providers overlap categories, so your job is to confirm exactly what is included, where, and under what service levels.

Logistics services you can expect from a 3PL

Most 3PL engagements include some combination of transportation, warehousing, fulfillment, and compliance support. The right mix depends on your products, order profile, and geography.

Transportation management (domestic and international)

A 3PL may plan and execute shipments across modes:

• Truckload (TL) and less-than-truckload (LTL)

• Intermodal rail

• Air freight

• Ocean freight (FCL and LCL)

If you ship internationally, a 3PL with freight forwarding capability typically helps with carrier selection, bookings, documentation, and exception management (for example, rolling a sailing, rebooking a flight, or recovering from a port delay).

What to expect day to day:

• Routing guides or mode recommendations based on cost and transit time

• Booking and tendering shipments

• Milestone tracking and escalation when something slips

• Freight invoice review and reporting (depending on scope)

Customs and trade compliance support

For cross-border shipments, many 3PLs either provide customs brokerage or coordinate it through licensed partners.

Common support areas include:

• Entry filing and documentation preparation

• Harmonized tariff classification and duty/tax estimation (often in partnership with your compliance team)

• Government requirements such as security filings (for example, U.S. ocean Importer Security Filing)

If you import into the United States, it is worth reviewing CBP guidance on importer responsibilities via U.S. Customs and Border Protection.

Warehousing, distribution, and fulfillment

Warehouse services vary widely, but a standard 3PL warehouse scope often includes:

• Receiving and putaway

• Storage (pallet, case, bin)

• Pick, pack, and ship (B2B, B2C, or both)

• Cycle counting and inventory control

• Returns processing (sometimes called reverse logistics)

• Value-added services (kitting, labeling, repacking, light assembly)

You should expect clear standard operating procedures (SOPs) for:

• Appointment scheduling and receiving cutoffs

• How shortages and damages are recorded

• Order cutoff times and shipping windows

• How inventory adjustments are requested, approved, and audited

Project cargo and special handling (when applicable)

If you ship oversized, overweight, high-value, or complex freight, some 3PLs offer project logistics and heavy lift management.

In that case, “logistics services” may extend to:

• Route and lift planning

• Specialized equipment sourcing (cranes, flat racks, open-top containers)

• Permits, escorts, and site coordination

• Risk planning, including cargo insurance options

Because project cargo varies so much, expect a 3PL to scope this as a separate project with a dedicated operations plan.

Cargo insurance and risk management

One of the most misunderstood parts of outsourced logistics is liability. Carrier liability is typically limited by law and contract, and it often does not equal your cargo’s full value.

Many 3PLs can help you procure cargo insurance (sometimes called marine cargo or transit insurance) or advise you on coverage options. If you want a deeper primer, SHIPIT Logistics publishes a detailed overview here: A Comprehensive Guide to Cargo Insurance.

How a 3PL relationship typically works (from kickoff to go-live)

Even when a 3PL is experienced, onboarding is a project. The best implementations are structured, documented, and measured.

A typical engagement looks like this:

Phase	What happens	What you should deliver	What you should receive
Discovery and scoping	Network review, order profile analysis, constraints	SKU list, order history, product/handling requirements	Proposed scope, assumptions, service model
Solution design	Facility fit, process design, transportation plan	Forecasts, seasonality, packaging standards	SOP drafts, implementation plan, preliminary KPIs
Systems integration	EDI/API setup, label formats, testing	Storefront/ERP details, carrier account preferences	Testing results, go-live checklist
Operational readiness	Training, slotting, inbound scheduling	Initial inbound plan, contacts and escalation paths	Final SOPs, staffing plan, cutover plan
Go-live and stabilization	First receiving, first shipments, issue resolution	Fast feedback, exception approvals	Weekly performance reviews, improvement backlog

A practical tip: insist on a written RACI (who is Responsible, Accountable, Consulted, Informed) for the first 60 to 90 days. Many “3PL problems” are actually unclear ownership problems.

Technology and visibility: what “good” looks like

3PL technology does not need to be flashy, but it does need to be reliable and auditable.

At minimum, ask how the 3PL supports:

• Order ingestion (EDI, API, file upload, or portal)

• Inventory visibility (on-hand, allocated, available, damaged, on-hold)

• Shipment tracking milestones (pickup, departure, arrival, delivered)

• Exception handling workflows (holds, address issues, carrier delays)

If your business is regulated or security-sensitive, also ask about:

• User access controls and audit logs

• Data retention policies

• Business continuity plans

A simple way to evaluate visibility is to request a sample of the reporting you will get monthly. If the 3PL cannot show you what “normal” reporting looks like, measurement will be painful later.

Pricing models: how 3PLs typically charge (and what drives cost)

There is no universal 3PL price list. Most pricing is a mix of transaction fees (activity-based) plus pass-through costs (freight, supplies, duties, and so on).

Common fee categories include:

Category	Examples	What drives cost
Receiving	Per pallet, per carton, per hour for floor-loaded containers	Inbound packaging, appointment discipline, labeling quality
Storage	Per pallet position, per bin, per square foot	Space, dwell time, seasonality
Fulfillment	Pick fees, pack fees, per-order handling	Order lines per order, small parts complexity, cutoffs
Value-added services	Kitting, labeling, repacking	Labor content, documentation requirements
Returns	Per return, inspection, restocking	Return rate, product condition variability
Transportation management	Management fee, per shipment fee	Shipment volume, mode complexity, exceptions
Accessorials	Detention, rework, special handling	Forecast accuracy, packaging compliance

To avoid surprises, clarify these items early:

• Minimum monthly charges (some 3PLs require them)

• Peak season surcharges and staffing premiums

• Material charges (boxes, dunnage, labels) and whether you can supply your own

• Inventory reconciliation policies and adjustment approvals

If you ship internationally, also confirm which charges are freight-related (carrier pass-through) vs 3PL service fees (documentation, handling, customs coordination).

KPIs and service levels to put in writing

A 3PL should be able to propose measurable KPIs tied to your customer promises. “Good service” is not a KPI.

Common warehouse and fulfillment KPIs include:

• Order accuracy rate

• On-time ship rate (against your stated cutoff)

• Inventory accuracy rate (cycle count performance)

• Dock-to-stock time (how fast inbound is available to sell)

• Damage rate and claims frequency

Transportation KPIs often include:

• On-time pickup and on-time delivery (by mode)

• Exception resolution time

• Cost per shipment (tracked over time, normalized where possible)

Two contract concepts matter here:

SLAs (service level agreements)

SLAs define the measurable target (for example, ship 99 percent of orders received by 2 p.m. the same day) and how it is measured.

SOW (statement of work)

The SOW defines exactly what processes the 3PL will perform, at what locations, during what hours, and with what exclusions.

If you remember only one thing: most friction comes from scope gaps, not bad intent. A strong SOW prevents “that’s not included” surprises.

Due diligence: how to choose the right 3PL for your business

The best 3PL for a high-SKU DTC brand may be the wrong 3PL for industrial freight, and vice versa. Evaluate fit, not popularity.

Key questions to ask during selection:

• What customer profiles do you serve most successfully (order volume, SKU count, product type)?

• Where do you operate (owned facilities, partner network), and what is the escalation path if something fails?

• What are your standard cutoffs, weekend capabilities, and peak season plan?

• How do you handle inventory adjustments, and what audit trail do you provide?

• What is your claims process for loss and damage, and how do you recommend insuring cargo?

Also consider asking for references that match your profile, not just general references.

What to expect from SHIPIT Logistics as a 3PL

SHIPIT Logistics is a global freight forwarding and logistics provider operating since 1974, supporting shippers, forwarders, and brokers with integrated logistics services.

Based on SHIPIT’s stated capabilities, customers can engage SHIPIT for a combination of:

• International freight forwarding across air and ocean

• Warehousing and fulfillment

• Trucking and multimodal transportation support (including rail)

• Customs brokerage support

• Project and heavy lift cargo coordination

• Cargo insurance options

• Technology integration and sustainability solutions

• A global partner network to support international moves

If you are evaluating 3PL support and want to align warehousing, forwarding, and customs under one operational approach, you can start by discussing your lanes, SKUs, service targets, and pain points with SHIPIT at SHIPIT Logistics.

A simple next step before you commit

Before signing a long-term agreement, ask any 3PL to run a short, structured “fit assessment” using your real data (orders, SKUs, inbound profile, and service promises). The output should be a documented process plan, a clear rate card, and a KPI set you can actually manage.

If your provider cannot explain how the operation works on a normal day and on a bad day, it is not ready to own your logistics.