What Are the Responsibilities of a Third Party Logistics Company?

Industrial Warehouse organized by third party logistics company

If you’re a consumer and you order something from a well-known retailer, does that retailer have their own staff members deliver items you bought to your door? Not necessarily. Oftentimes third party logistics companies are involved. They provide supply chain processes for companies, and these processes can include things like procurement, transportation and distribution functions. 

Inventory Management

Basically, third party logistics companies do work for their clients involving inventory management. So, they can handle the more mundane tasks like storing items and fulfilling orders, allowing their clients to focus on other things– like selling more stuff.

Warehousing Tasks

Typically, third party logistics companies do warehouse tasks like receiving, picking, packing and shipping items. They might also handle returns. Some of the advantages of utilizing a third party logistics company to help you accomplish your tasks include flexibility, scalability, affordability, time savings, access to experts and the ability to then focus on your business rather than worrying about inventory concerns.


Third party logistics companies are often hired by other companies who are, for instance, too small to have their own logistics infrastructure or companies who want to quickly scale their operations. Also, if companies have variable demands throughout the calendar year, they may hire other companies to help meet increased demands, especially at holiday time for example. 

Miscellaneous Tasks

If you work for a company that sells items, you might want to think about hiring a third party logistics company to help you with your business. They can help you keep up with orders. They communicate with customers. They can simplify your logistics for you. And, best of all, they can save your business money when they get discounted rates from shipping companies such as FedEx or UPS.  Third party logistics companies are known for things like storage, packing and delivery of items. They can also offer tracking and security services on the delivery of items, and/or develop relationships with business partners or even get involved in hiring decisions for your company, depending on how much help you need.