Get a Quote
Social Media

What is 3PL warehousing?

Last updated:

Short Answer — 3PL Warehousing

3PL warehousing means a company handing over its storage and related logistics operations to a third-party logistics provider under contract. The provider runs goods receipt, storage, order picking, packing, labelling and dispatch with its own warehouse, staff and software. Instead of a fixed warehouse investment, the customer pays for the space it uses and the operations it orders; performance is measured by the KPIs in the contract.

What does 3PL warehousing cover?

The abbreviation 3PL (third-party logistics) refers to a "third-party" logistics company other than the owner and the buyer of the product. On the warehousing side, the service is not just renting racks; the entire chain of operations between inbound and outbound is handed over:

  • Goods receipt: Vehicle unloading, counting, damage check, entry into the system
  • Inventory management: Location assignment, lot and expiry tracking, periodic counts; the infrastructure for these tasks is the warehouse management system (WMS)
  • Order preparation: Picking, checking, packing, shipping label
  • Value-added services: Labelling and relabelling, kitting, repacking, sample allocation, returns sorting
  • Distribution: Full-load shipments, part-load distribution, cross-docking where needed

Why is it preferred?

Setting up your own warehouse requires investment in land, building, racking, forklifts, software and staff; when occupancy fluctuates seasonally, part of this capacity stays empty all year. In the 3PL model, cost becomes variable: the customer pays for the pallet positions it uses and the operations it orders. A manufacturer entering a new market can hold regional stock in its first year without setting up a warehouse. For products that require licences and certificates, such as pharmaceuticals, chemicals or food, ready access to compliant infrastructure is another important reason.

Shared or dedicated?

In a shared (multi-client) warehouse, space, equipment and staff are split among several customers; unit cost falls, but processes follow the provider's standard flow. In the dedicated model, all or part of the warehouse is assigned to a single customer. This model is preferred for products requiring a special rack layout, extra security or licences; contracts are usually longer-term and include volume commitments.

How is it priced?

ItemCommon unit
StoragePer pallet position per day/month, m² or m³
Inbound handlingPer pallet, carton or container
Order pickingPer order line or per unit
Value-added servicePer unit or per hour
System and reportingFixed monthly fee

Which KPIs is it measured by?

  • Inventory accuracy: Match between system stock and physical count
  • Order accuracy: Right product, right quantity, right address
  • On-time in-full delivery: The measurement method is in the OTIF entry
  • Dock-to-stock time: Time for incoming goods to become saleable stock
  • Same-day dispatch rate and damage rate

The measurement definition of each KPI should be written down as well as its target: will "order accuracy" be calculated per line or per order, and will customer-caused delays be excluded?

What should the contract cover?

Under the Turkish Code of Obligations (Türk Borçlar Kanunu), the warehouse keeper must store the goods entrusted to it with the care of a commission agent and notify the depositor of changes requiring precautions (Art. 572). It has a right of retention over the goods for its fees and expenses (Art. 574). In addition to these general rules, the contract should clearly cover: liability limit and insurance, acceptable count variance, shrinkage, who owns the inventory data, and stock transfer at the end of the contract. A detailed checklist is in the storage contract entry; for pharmaceutical products, GDP storage rules also apply.

How does Voltim Global support this?

Voltim Global holds ISO 28000 supply chain security, ISO 50001 energy management system and ISO 14001 environmental management system certificates; the warehousing and distribution service is carried out with partner warehouses. For temperature-sensitive products such as pharmaceuticals, GDP requires storage and transport to be managed under the same rules.

Frequently Asked Questions

What is the difference between 3PL and 4PL?
A 3PL runs physical logistics operations such as storage and transport with its own resources. A 4PL, by contrast, is a management layer that, often without operating physical assets, coordinates the customer's entire supply chain across several 3PLs, carriers and software providers. For small and medium-sized companies, a well-defined 3PL contract is usually sufficient.
Who pays if stock in a 3PL warehouse turns out to be lost or damaged?
The logistics company is responsible under its duty of care and the liability clauses of the contract; however, compensation is often limited by a cap set in the contract and a defined count-variance tolerance. For this reason, storage or goods insurance covering the value of the products should be planned separately. The contract should state which party takes out the insurance.

Published: 13.11.2026 · Voltim Global