1. MPLS simplifies forwarding by introducing label switching which uses a forwarding table and label carried in each packet rather than conventional IP routing based on IP addresses.
2. MPLS establishes label switched paths between routers where each router along the path transmits the packet to the next router by means of a label. Edge routers analyze packets and assign an initial label.
3. The main benefits of MPLS include improved performance, scalability, and traffic engineering capabilities compared to conventional IP routing.