What is 3PL? Top renowned 3PL companies in Singapore

Today, we dive into the pivotal concept of 'What is 3PL?' Third-party logistics, abbreviated as 3PL, is a cornerstone of modern business operations. At Recruitery, we explore this multifaceted topic, shedding light on its significance, benefits, and various facets in the logistics industry. Join us on this informative journey as we unravel the intricacies of 3PL and its role in shaping the future of businesses.

What is 3PL?

3PL Concept

At the beginning of this article, we will delve into the meaning of 3PL. 3PL stands for Third-party logistics, which refers to third-party logistics services. These are companies that specialize in providing supply chain-related services to other businesses, including transportation, warehousing, distribution, forwarding, packaging, inventory management, order processing, returns management, and payments.

Operating in a 3PL Business

What are the forms of operation for 3PL businesses? They typically operate in two forms: outsourcing and contracting.

  • Outsourcing: Businesses hire a 3PL company to handle either some or all of the activities in their supply chain.
  • Contracting: A business enters into a contract with a 3PL company to provide a specific service within its supply chain.

Benefits that 3PL Brings to Businesses

Benefits of 3PL

Utilizing the services of 3PL companies can offer numerous advantages to businesses. What are these benefits?

Cost Savings

  • Minimizing investment costs in personnel, equipment, warehouses, and transportation.
  • Reducing operating and management costs by optimizing the efficiency and quality of supply chain activities.

Increasing Productivity

  • Allowing businesses to focus on their core activities.
  • Implementing advanced technologies to enhance the efficiency and flexibility of supply chain activities.

Market Expansion

  • Reaching a broader customer base and forming new partnerships.
  • Adapting to new markets by providing customized logistics solutions in line with regional regulations, cultures, and preferences.

Types of 3PL Businesses

Different Types of 3PL Businesses

There are various types of 3PL businesses based on the services they provide. Let Recruitery help you discover these types of 3PL businesses.

Transportation-based Businesses

  • Specializing in the transportation of goods by road, rail, air, or sea.
  • Providing services such as selecting transportation means, route planning, tracking and controlling goods, handling customs procedures, and insurance.

Distribution-based Businesses

  • Specializing in the storage and distribution of goods for businesses.
  • Offering services like warehouse rental, inventory management, packaging and delivery of goods, order processing, and handling returns.

Forwarder-based Businesses

  • Specializing in freight forwarding for businesses.
  • Providing services such as searching for and liaising with carriers, booking and confirming flights or ships, managing import and export procedures, and handling insurance.

Financial-based Businesses

  • Specializing in providing financial services related to supply chains for businesses.
  • Offering services such as paying suppliers, collecting payments from customers, risk and credit management, auditing, and financial reporting.

Technology-based Businesses

  • Specializing in providing technology solutions to support businesses' supply chains.
  • Offering services such as designing and implementing information systems, software and hardware related to the supply chain, collecting and analyzing data, and creating reports and charts.

Top Renowned 3PL Companies in Singapore

As of my last knowledge update in September 2021, here are some of the top 3PL (Third-Party Logistics) companies that were well-known and established in Singapore. 

DHL Supply Chain Singapore

DHL is a global leader in logistics and supply chain solutions, and its Singapore operations are no exception. They offer a wide range of services, including transportation, warehousing, and distribution.

DB Schenker Singapore

DB Schenker is a well-established logistics company with a strong presence in Singapore. They provide comprehensive logistics solutions, including air and ocean freight, land transport, and warehousing.

UPS Singapore

United Parcel Service (UPS) is known for its global logistics and package delivery services. They offer various supply chain solutions and have a significant presence in Singapore.

Kuehne + Nagel Singapore

Kuehne + Nagel is a global logistics provider with a strong presence in Singapore. They offer services such as air and sea freight, contract logistics, and integrated supply chain solutions.

Yusen Logistics Singapore

Yusen Logistics is known for its expertise in supply chain management and logistics services. They offer a range of solutions, including transportation, warehousing, and distribution.

CEVA Logistics Singapore

CEVA Logistics is a global logistics company with operations in Singapore. They provide logistics solutions across various industries, including automotive, healthcare, and consumer electronics.

Panalpina World Transport (Singapore) Pte Ltd

Panalpina, now part of DSV, was a prominent logistics company known for its international freight forwarding and supply chain services.

GEODIS Singapore

GEODIS is a global logistics provider offering a wide range of services, including freight forwarding, contract logistics, and distribution. They have a presence in Singapore.

Expeditors Singapore

Expeditors is known for its expertise in global logistics and supply chain solutions. They offer services like customs brokerage, air and ocean freight, and distribution.

Hellmann Worldwide Logistics Singapore

Hellmann is a global logistics company with operations in Singapore. They provide logistics and transportation solutions to various industries.

Please keep in mind that the ranking and prominence of logistics companies can change over time, so it's a good practice to research the most up-to-date information and consider your specific logistics needs when choosing a 3PL partner in Singapore.


In conclusion, "What is 3PL?" has been thoroughly explored, shedding light on the essential role of third-party logistics in the modern business landscape. Recruitery has provided valuable insights into the world of 3PL, from its core concepts to the benefits it offers to businesses. By showcasing top 3PL companies in Vietnam, Recruitery has facilitated the process of selecting the right partner to enhance your supply chain operations. We hope this information proves invaluable as you navigate the dynamic realm of logistics and make informed decisions for your business's success.