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Fourth Party Logistics (4PL) is the integration of all companies involved along the supply
chain. 4PL is the planning, steering and controlling of all logistic procedures (for example
flow of information, material and capital) by one service provider with long term strategic
objectives. Fourth party logistics (4PL) has evolved as a breakthrough supply chain solution comprehensively
integrating the competencies of third party logistics (3PL) providers, leading edge consulting firms and
technology providers
4 PLs see the process and what is required for the process to succeed. A 4PL is a supply
chain manager & enabler who assemblies and manages resources, build capabilities and
technology with those of complimentary service providers. They act as the first point for
delivering unique and comprehensive supply chain solutions. 4PL leverages combined capabilities of
management consulting and 3PLs. They act as an integrator assembling the resources, capabilities, and
technology of their own organization and other organizations
to design, build and run comprehensive supply chain solutions. 4 PL is an emerging trend and it is a complex
model and offers greater benefits in terms of economies of scale.
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http://logisticsmgt.blogspot.com/2011/11/what-is-difference-between-1pl-2pl-3pl.html
What is the Difference between 1PL, 2PL, 3PL, 4PL and 5PL
logistics ?
The rise of 3PL in logistics and supply chain is now well evident but how far has 4PL developed and what is 5PL?
- A first-party logistics provider (1PL) is a firm or an individual that needs to have cargo, freight, goods, produce
or merchandise transported from a point A to a point B. The term first-party logistics provider stands both for the
cargo sender and for the cargo receiver.
A 1PL can be a manufacturer, trader, importer/exporter, wholesaler, retailer or distributor in the international
commerce field. It can also be institutions such a government department or an
individual or family removing from one place to another.
Anyone having goods moved from their place of origin to their new place is considered to be first-party logistics
provider.
- A second-party logistics provider (2PL) is an asset-based carrier, which actually owns the means of
transportation. Typical 2PLs would be shipping lines which own, lease or charter their ships; airlines which own,
lease or charter their planes and truck companies which own or lease their trucks.
- A third-party logistics provider (3PL) provides outsourced or 'third party' logistics services to companies for part
or sometimes all of their supply chain management function.
Well known 3PLs include DHL, Wincanton, Norbert-Dentressangle, CEVA & NYK Logistics
- A fourth-party logistics provider (4PL) is an independent, singularly accountable, non-asset based integrator
who will assemble the resources, capabilities and technology of its own organisation and other organisations,
incuding 3PLs, to design, build and run comprehensive supply chain solutions for clients.
- A fifth party logistics provider (5PL) will aggregate the demands of the 3PL and others into bulk volume for
negotiating more favourable rates with airlines and shipping companies.
Non asset based, it will work seamlessly across all disciplines.
The central ethos of 5PL is its commitment to collaboration and to obtaining a higher degree of resource utilisation in
order to achieve savings and open up opportunities to secure the best possible solution at minimum cost/carbon etc.