Third-Party Logistics Contract — Create a comprehensive 3PL agreement covering warehousing, fulfillment, transportation, and inventory management
A Third-Party Logistics (3PL) Agreement is a contract between a business (the Client) and a logistics provider that handles warehousing, transportation, order fulfillment, and inventory management on the client’s behalf. As e-commerce and supply chain complexity have grown, 3PL partnerships have become essential for businesses that want to scale without building their own logistics infrastructure.
A well-drafted 3PL agreement protects both parties by clearly defining service levels, liability limits, pricing structures, and performance metrics. Without a comprehensive contract, disputes over damaged goods, inventory shrinkage, late deliveries, and billing errors can quickly erode the relationship.
SLAs define measurable performance standards: order accuracy rates, pick-and-pack times, shipping cutoff windows, and inventory accuracy targets. Most 3PL agreements set inventory accuracy at 98–99.5% and order accuracy at 99%+.
Liability caps protect the 3PL provider from unlimited exposure while ensuring the client has recourse for damaged or lost goods. Standard coverage includes commercial general liability ($2M+), warehouse legal liability, and cargo insurance.
3PL pricing can be fixed (monthly fee), variable (per-pallet, per-order, per-shipment), or hybrid. The agreement should clearly detail all fees, minimum commitments, and the process for price adjustments.
The 3PL provider handles sensitive business data including customer addresses, order volumes, and product information. Strong confidentiality and data protection clauses are essential.
As a California-licensed attorney who has negotiated dozens of logistics and supply chain contracts, I saw businesses either signing the provider’s one-sided template or paying $5,000+ for custom drafting. This generator produces a balanced, comprehensive 3PL agreement with proper liability protections, SLA frameworks, inventory management terms, and dispute resolution mechanisms — all customized to your specific logistics needs.