Recruiter's Glossary

Examples: Freight Forwarding • Cycle Count • Last Mile Delivery

3PL (Third Party Logistics)

Term from Logistics Consulting industry explained for recruiters

3PL (Third Party Logistics) refers to companies that help other businesses manage their shipping, warehousing, and product distribution needs. Think of them like a professional moving and storage service, but for businesses. Instead of handling all their logistics in-house, companies hire 3PLs to store their products, pack orders, and ship items to customers. This saves businesses from having to run their own warehouses or manage complex shipping operations. Common examples include companies like DHL, XPO Logistics, and C.H. Robinson. This role is becoming increasingly important as online shopping continues to grow and businesses need help managing their supply chains.

Examples in Resumes

Managed relationships with 3PL partners across 5 regions, reducing shipping costs by 25%

Led implementation of new Third Party Logistics provider transition for nationwide distribution

Evaluated and selected 3PL vendors for international expansion project

Optimized Third-Party Logistics operations resulting in 30% improvement in delivery times

Typical job title: "3PL Managers"

Also try searching for:

Logistics Manager Supply Chain Manager 3PL Coordinator Logistics Operations Manager Supply Chain Coordinator Distribution Manager Logistics Consultant

Where to Find 3PL Managers

Professional Associations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you manage a situation where a 3PL provider consistently fails to meet performance metrics?

Expected Answer: A senior manager should discuss their approach to vendor management, including: setting up regular performance reviews, developing improvement plans, having escalation procedures, and knowing when to consider alternative providers. They should also mention how to document issues and maintain professional relationships.

Q: Tell me about a time you implemented a major change in logistics operations. What was your approach?

Expected Answer: Look for experience in project management, stakeholder communication, risk assessment, and change management. They should describe how they planned the transition, managed team concerns, and ensured business continuity.

Mid Level Questions

Q: What key performance indicators (KPIs) do you use to measure 3PL performance?

Expected Answer: Should mention metrics like on-time delivery rates, shipping accuracy, inventory accuracy, warehouse costs per unit, and order fulfillment time. Should understand how these metrics impact business goals.

Q: How do you evaluate potential 3PL partners?

Expected Answer: Should discuss factors like cost, geographic coverage, technology capabilities, industry experience, financial stability, and reference checks. Should understand the importance of site visits and service level agreements.

Junior Level Questions

Q: What are the main services that 3PLs typically provide?

Expected Answer: Should be able to explain basic services like warehousing, transportation, inventory management, order fulfillment, and shipping. Should understand the difference between various service levels.

Q: How do you ensure accurate inventory counts when working with a 3PL?

Expected Answer: Should discuss basic inventory management practices like regular cycle counts, reconciliation reports, and communication procedures with the 3PL provider.