Third-party logistics providers (3PLs) are everywhere in today’s supply chain. Yet despite how common they are, many shippers still misunderstand what a 3PL actually does and how to get the most value from the partnership.
At L&M Distribution and Logistics, we’ve seen firsthand how the wrong expectations can limit results, while the right approach can transform operations. Let’s clear up some of the most common misconceptions and talk about how shippers can get it right.
Misconception #1: “A 3PL Is Just a Warehouse”
This is one of the biggest and most costly mistakes.
Many shippers view a 3PL as nothing more than storage space with forklifts. While warehousing is important, modern 3PLs offer much more: inventory management, order fulfillment, transportation coordination, value-added services, technology integration, and strategic insight.
Get it right:
Think of your 3PL as an extension of your operations, not just a place to park inventory. When you leverage their full capabilities, you gain efficiency, scalability, and visibility across your supply chain.
Misconception #2: “Cheapest Is Best”
Price matters, but focusing only on cost often leads to bigger problems down the road. Low rates don’t mean much if orders ship late, inventory accuracy suffers, or customer satisfaction drops.
Get it right:
Look at total value, not just line-item pricing. A reliable 3PL reduces errors, shortens delivery times, and protects your brand reputation. In many cases, a slightly higher upfront cost leads to lower overall supply chain expenses.
Misconception #3: “All 3PLs Are Basically the Same”
Not all 3PLs operate the same way, and assuming they do can lead to a poor fit. Some specialize in e-commerce, others in retail distribution, food-grade storage, or high-volume fulfillment. Technology, processes, and service models vary widely.
Get it right:
Choose a 3PL that aligns with your specific business needs, industry requirements, and growth goals. At L&M, we tailor solutions based on how our customers actually operate because no two supply chains are identical.
Misconception #4: “Once We Onboard, the Job Is Done”
Some shippers treat onboarding as the finish line instead of the starting point. When communication slows or KPIs aren’t reviewed, small issues can quietly turn into major disruptions.
Get it right:
A strong 3PL relationship is collaborative and ongoing. Regular check-ins, performance reviews, and open communication help both sides adapt as volumes, channels, and customer expectations change.
Misconception #5: “Technology Isn’t That Important”
In today’s logistics environment, relying on spreadsheets or limited visibility is a major risk. Without real-time data, shippers are forced to react instead of plan.
Get it right:
Work with a 3PL that invests in technology – WMS platforms, reporting tools, and integrations that give you clear insight into inventory, orders, and performance. Better data leads to better decisions.
Getting the Most from Your 3PL Partnership
When shippers understand what 3PLs truly offer, the relationship shifts from transactional to strategic. The right partner helps you:
- Scale without heavy capital investment
- Improve order accuracy and speed
- Navigate seasonal demand and growth
- Focus internal teams on core business priorities
At L&M Distribution and Logistics, our goal is simple: to be a partner that strengthens your supply chain, not just a service provider that moves boxes.
If you’re re-evaluating your current logistics strategy or considering a 3PL for the first time, getting these fundamentals right can make all the difference. Connect with L&M Distribution and Logistics today to see how the right 3PL partnership can turn your supply chain into a competitive advantage.
