
Third-party logistics companies, also known as fulfilment providers or 3PL, play a significant role in the United Kingdom’s supply chain. These companies manage the logistics operations and supply chain of external businesses. It is estimated that the average industry profit margin will be 8.6% between 2022 and 2023, but this will depend on whether a third-party logistic company is a non-asset or an asset-based provider.
Customers of 3PL companies typically outsource fulfilment operations, allowing them to save on investing in logistics management software, warehouse space, e-commerce platforms, retail outlets, distribution sites, logistic labourers, and transportation.
Services Offered by Third Party Logistics Companies in UK
The client’s needs ultimately determine the level of support offered by 3PL companies. The following are the most common services provided by third-party logistics companies:
- Procurement: 3PL companies order and receive products from different places in the supply chain.
- Order Fulfilment: They receive orders from customers,

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