When Should You Use a 3PL?

What is a 3PL and What Does It Do?

A third-party logistics provider (3PL) manages some or all logistics operations for your business. This includes services like warehousing, inventory management, order fulfillment, and transportation. Instead of managing logistics in-house, you outsource those responsibilities to a logistics partner that specializes in them.

3PLs give you access to logistics infrastructure without having to invest in your own warehouse, software, or transportation fleet. Most 3PLs offer scalable solutions so you can adjust space and labour as needed.

They often provide:

• Warehousing space, usually shared across multiple clients
• Inventory tracking through integrated systems (often EDI or API)
• Pick and pack operations
• Shipping and transportation management
• Returns processing and quality control

Some 3PLs offer value-added services like custom kitting, product rework, or direct-to-consumer shipping. You choose what services to use based on your business model.

Benefits of Using a 3PL

Using a 3PL lets you stay focused on growing your business instead of running logistics. As your business grows more complex, so do the demands of order fulfillment, inventory accuracy, and freight coordination. A reliable 3PL can absorb those demands and give you back time and focus.

Working with a 3PL helps you:

• Reduce overhead from warehousing and labour
• Avoid long-term leases or warehouse commitments
• Improve order accuracy and shipping timelines
• Access to high-level WMS and reporting technology, providing real-time visibility into performance metrics
• Access warehouse and freight capacity during peak seasons

Businesses also benefit from the 3PL’s logistics experience. You don’t need to become an expert in freight or warehouse operations—they already are. Many 3PLs offer performance reporting and dashboards so you can track KPIs like on-time delivery and order accuracy without micromanaging the process.

These advantages become more important as your business scales. A 3PL can adjust with you, while your internal team stays lean.

When Should You Use a 3PL

You should use a 3PL when logistics starts slowing down your business. If your team is spending more time handling orders than building product or acquiring customers, you’ve outgrown the in-house model.

The timing depends on what stage your business is in. A common mistake is waiting too long to make the switch, only to find yourself scrambling during a growth spurt or peak season. Logistics is foundational—it either supports your growth or holds it back.

There are two typical points where outsourcing makes sense: when your business is scaling, and when you’re launching or testing new products.

For Businesses who Are Scaling

If you’re scaling fast and running into warehouse space limits, now is the time to look at a 3PL. As order volume grows, your need for warehouse space, staffing, and efficient processes increases. A 3PL already has that infrastructure in place. You can ramp up capacity without committing to long-term leases or hiring warehouse staff yourself.

Outsourcing to a 3PL during growth lets you:

• Avoid buying or leasing a larger facility before you’re ready
• Handle seasonal spikes without hiring temporary labour
• Keep your team focused on sales, product, and customer experience
• Expand to new regions using the 3PL’s existing footprint

A 3PL gives you a buffer during expansion. You don’t have to scale your operations department in lockstep with sales.

For Businesses Starting Up

If you’re launching a business, using a 3PL early can reduce risk and overhead. Renting your own space, setting up racking, buying equipment, investing in supply chain technology, and hiring staff is expensive and locks you into fixed costs. A 3PL offers flexibility from day one.

Newer companies use 3PLs because:

• It’s easier and faster to get to market
• There’s no need for upfront investment in logistics assets
• You only pay for the space and services you actually use
• You can test new product lines without operational overhead

Early-stage outsourcing doesn’t mean giving up control. Most 3PLs offer performance visibility, integration with your ecommerce or ERP systems, and dedicated points of contact. You stay in charge of the customer experience without being tied up in warehouse operations.

As your business grows, a good 3PL will grow with you.

How To Pick a Good 3PL

The right 3PL will support your growth instead of adding complexity. Choosing a logistics partner isn’t just about price—it’s about performance, transparency, and alignment with your business model. A 3PL that overpromises and underdelivers will cost you more in service failures than you’ll ever save on rates.

Start by defining what you need. Are you looking for warehousing only? Do you need ecommerce fulfillment, retail distribution, or transportation as well? Your answer should guide the shortlist.

Assess each 3PL for:

• Operational transparency: Do they offer real-time tracking, reporting, or dashboards?
• Specialization: Do they have experience in your industry or product category?
• Capacity: Can they meet your current needs and grow with you?
• Communication: Do they offer a single point of contact and clear lines of responsibility?
• References or proof: Can they back up claims with case studies, KPIs, or client feedback?

It’s also important to ask what they don’t do. A 3PL that says yes to everything might be masking limitations. Look for honesty about where they excel and where they don’t.

Finally, visit their facilities if possible. Warehouse organization, staff engagement, and system clarity speak volumes.

See our guide on how to pick a great 3PL partner

PiVAL is a 3PL – We Can Help You

PiVAL is a Canadian 3PL with the infrastructure, systems, and people to support your operations across the country. We don’t offer generic services—we build logistics programs that match your business stage, complexity, and industry.

We’re built for business owners and operations managers who need a 3PL partner that can move fast and grow with them.

When you work with PiVAL, you get:

• A single point of contact, so you always know who’s accountable
• A flexible operation that can scale with you as volume or complexity increases
• Warehouses in Montreal, Toronto, Guelph, and Vancouver, giving you strong national reach
• A coast-to-coast logistics solution, from warehousing to transportation and returns
• Experience with industries like tires, manufacturing, construction, retail, and pulp & paper

Whether you’re entering the Canadian market, expanding from in-house fulfillment, or replacing an underperforming 3PL, PiVAL can step in with a clean, professional transition plan and the operational depth to back it up.

We’ll help you focus on what drives your business, while we take care of the logistics.

PiVAL specializes in:

• Automotive Parts and Tires (OE & RE)
• Retail Suppliers
• Manufacturing
• Pulp & Paper
• Construction Sites

Our warehouses are located in:

• Montreal
• Toronto
• Guelph
• Vancouver

Contact a PiVAL logistics expert today