3PL and warehousing services manage inventory for components and finished goods on a company’s behalf — storage, pick-and-pack, and fulfillment handled by a third party rather than in-house. It’s typically brought in once inventory volume outgrows what a team can manage internally.
Most hardware companies outgrow in-house inventory management at a fairly predictable point — once SKU count and order volume make manual tracking unreliable.
Related terms: third-party logistics (3PL), inventory management, pick and pack fulfillment, warehouse management system (WMS), kitting and light assembly, returns processing (reverse logistics), safety stock planning
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