The term Third Party Logistics describes the outsourcing of logistics and warehousing services to a third logistics service provider. A third party logistics provider is an important interface between producers and customers and takes on all the tasks to deliver the goods directly from the producer to the customer.
A third party logistics service provider offers in-house storage and transport options. Thus, the goods can be stored practically after production before they are transported to the customer. Since these companies typically work for several clients, they can offer their logistics services at a lower cost than when the companies handle the transport and storage themselves. For this reason, good third-party logistics providers are not short of orders and the industry is still growing.