A third-party logistics (3PL) company can help your business optimize inventory management, eliminate friction from the buyer journey and decrease shipping times. It’s important to identify which provider offers the right combination of services and support for your business. FreightWaves Ratings has compiled a list of the top 3PL companies so you can identify the ideal provider for your organization.
Quicklook: Top 3PL companies
- Best for end-to-end support: ShipBob
- Best for free trials: Red Stag Fulfillment
- Best for international support: XPO
- Best for customer service: FreightPros
- Best for North American logistics: Redhawk Logistics
- Best for order accuracy: ShipNetwork
- Best for integrated tech: Omni Logistics
Top third-party logistics providers
Our list of 3PL providers includes industry leaders such as:
ShipBob
ShipBob is known for providing true end-to-end logistics support. It offers powerful integration tools, reliable fulfillment services and much more. The company’s user-friendly cloud-based platform provides a seamless onboarding process.
Best for: End-to-end support
Number of warehouses: 40+
Shipping discounts: Yes
Customer service: Phone, email, web chat
Special features:
- Integrations
- Robust reporting tools
Benefits:
- Two-day shipping
- Fulfillment
- Return management
- International operations (Australia, Canada, Europe and Mexico)
Disadvantages:
- International shipping costs can be a bit high
Pricing: Varies based on the type of services provided
Red Stag Fulfillment
Red Stag Fulfillment specializes in domestic logistics management. It can also assist with other facets of supply chain management, including distribution. Additionally, it provides a 30-day free trial for its fulfillment services.
Best for: Free trials
Number of warehouses: 2
Shipping discounts: No
Customer service: Phone and email
Special features:
- Free trial
- Pays you $50 if they make certain fulfillment errors
Benefits:
- Free trial
- Offers odd-object shipping
- Provides kitting and assembly services
Disadvantages:
- Rates for standard parcels are somewhat higher
- Only two warehouses
Pricing: Contact for quote
XPO
XPO is a carrier that specializes in less-than-truckload (LTL) shipping. However, the company also provides 3PL support. The company has more than 1,400 global locations spread across 33 countries.
Best for: International support
Number of warehouses: 1,440
Shipping discounts: Yes
Customer service: Phone, email, web chat
Special features:
- National coverage
- International support
Benefits:
- Fast domestic shipping
- Cost-effective international shipping
Disadvantages:
- Online tools require some getting used to
Pricing: Contact for quote
FreightPros
FreightPros has a reputation for providing exceptional customer service. This 3PL partner offers everything from distribution support to returns handling. It also works with carriers throughout the nation to ensure customer satisfaction.
Best for: Customer service
Number of warehouses: Unknown
Shipping discounts: Yes
Customer service: Phone and email
Special features:
- Shipping discounts
- Return management services
- User-friendly platform
Benefits:
- Great customer service
- Affordable prices
- Services tailored for small businesses
Disadvantages:
- No international locations
- Less robust software than other providers
Pricing: Contact for a quote
Redhawk Logistics
Redhawk Logistics has locations in the U.S. and Canada. It can provide supply chain management support and fast shipping nationwide. It also offers distribution, warehousing and freight services.
Best for: North American logistics
Number of warehouses: 4
Shipping discounts: Yes
Customer service: Phone, email, web chat
Special features:
- Proprietary TMS solution
- Route optimization tools
- APIs to integrate with your software
Benefits:
- Integrates with popular e-commerce solutions
- Easy-to-use shipment tracking tools
Disadvantages:
- Fluctuating costs based on current rates
- All warehouses located in Ohio
Pricing: Contact for quote
ShipNetwork
ShipNetwork offers order fulfillment, cost-effective shipping, inventory management and much more. The platform can integrate with many popular solutions such as Shopify. ShipNetwork offers a 100% order accuracy guarantee and one- to two-day ground delivery to most of the U.S.
Best for: Order accuracy
Number of warehouses: 12
Shipping discounts: Yes
Customer service: Phone, web chat, email
Special features:
- Integrations
- Can create custom APIs to integrate with your unique software
Benefits:
- 100% order accuracy guarantee
- One-day fulfillment
- One- to two-day day ground delivery
- U.S.-based support
Disadvantages:
- High minimum pick-and-pack fee ($250 per month)
- Unclear pricing
Pricing: Contact for a quote
Omni Logistics
Omni Logistics offers scalable 3PL services to fit any organization. This provider has plenty of locations, domestically and abroad. It can connect you with logistics partners the world over.
Best for: Integrated tech
Number of warehouses: 100+
Shipping discounts: Yes
Customer service: Web chat, phone, email
Special features:
- Locations on four continents
- Software integrations
- Kitting services
Benefits:
- Locations in 21 countries
- Provides freight forwarding
- Handles returns
Disadvantages:
- Varied pricing
- High international rates
Pricing: Contact for a quote
What is a 3PL company?
A 3PL company oversees product warehousing, picking, packing, shipping and returns. It might also provide powerful software integrations like inventory management technology and order tracking solutions.
How do 3PL companies work?
3PL providers are similar to fulfillment companies, but also assist with distribution and other facets of supply chain management. Your partner can also help improve your logistics, resulting in better customer experiences.
What to consider with 3PL companies
When choosing a partner from this list of top 3PL companies, you should consider how the following factors:
Global network
Even if you only serve U.S. customers, finding a partner with a global network is a good idea. They’ll be able to leverage their connections to streamline your supply chain and help your business withstand shifting market conditions.
Software integration
Leading 3PL providers offer software solutions and APIs that integrate with your existing technology suite. This way, you can gain real-time insights into the state of your business.
Returns
A provider that manages returns and exchanges can reduce the burden on your in-house team. Ideally, you want a provider that automates these processes, saving you time.
Shipping discounts
3PLs ship far more products than just yours, so they often have access to volume-based shipping discounts. They can often pass some of these savings onto you, especially if your order volume surpasses certain thresholds.
Customer service
The top 3PL companies have high-quality customer service. Make sure you choose a partner with a reputation for providing prompt, timely support. Doing so allows you to quickly resolve issues with your own customers and maintain a positive reputation.
Shipping speeds
Today’s consumers expect to receive their goods quickly. To accommodate them, you should look for a partner that offers one-day, two-day or expedited shipping.
Does my business need a 3PL partner?
Nearly any company can improve its logistics management by partnering with a 3PL. However, not every 3PL will be a good fit for your business.
When choosing a provider, consider its cost and scope, and whether it can solve your most pressing supply chain challenges. Doing this research will enable you to make the wisest decision for your business and pave the way for continued growth.
FAQ
A 3PL provides logistics management so that you can focus on core business operations.
3PL is a form of outsourcing, but it is not your only outsourcing option. Instead, you could work with a provider specializing in fulfillment but offering no back-end logistics support.
3PL companies assess how distribution and fulfillment impact your supply chain and influence the customer experience. They can promote business efficiency and increased productivity.
