14 Jul Difference between 1PL, 2PL, 3PL, 4PL & 5PL! The rise of 3PL in logistics and supply chain is now well evident but how far has 4PL. 5 Mar 3 PL or 3rd Party logistics are simply partner Companies that take care of the logistics services of the parent company. For e.g. If my e retailing company deals in. Third Party (3PL) and Fourth Party (4PL) Logistics: What’s the Difference? accountability of 4PLs is the major differentiating factor between 3PLs and 4PLs.

Author: Kami Nilrajas
Country: Anguilla
Language: English (Spanish)
Genre: History
Published (Last): 16 September 2008
Pages: 131
PDF File Size: 4.49 Mb
ePub File Size: 10.41 Mb
ISBN: 650-3-49500-712-9
Downloads: 82846
Price: Free* [*Free Regsitration Required]
Uploader: Gardajora

We handle all reverse logistics and restocking of unused items.

What is the difference between 3PL and 4PL and other logistics providers?

Greater visibility into inventories and reverse logistics improves ease of auditing, reducing the need for physical auditing. The primary advantage of a 4PL relationship is that it is a strategic relationship focused on providing the highest level of services for the best value, as opposed to a 3PL that may be more transaction focused. Thus, 3PLs are a logistics support system while 4PLs are more involved in driving business performance. Meeting service level agreement SLA expectation is crucial to customer satisfaction, and a well-managed forward deployment program can ensure standards are met or exceeded.

What is abd Third-Party Logistics Provider? If you would like to receive periodic news from MAI, please differencce here to subscribe to be added to our email distribution list. Clients are looking for delivery to the end-user department, on-site inventorying, returns and repairs and other small but vital steps in serving customers. The field techs don’t have to function as warehouse operators anymore. We maintain their inventory, relieving field reps of that burden and eliminating consignment costs.

As a result, 3rd Party Logistics and 4th Party Logistics companies have evolved to offer more services and features than merely freight forwarding — and the advent of 5th Party Logistics is imminent.

The extra cost of shipping these items to and from the hospital and DC were excessive, and consumed by the medical device company. That means some activities will take place outside of betwen direct supervision.


The 4PL functions at the integration and optimization level, while a 3PL may be more focused on day-to-day operations. What is inventory kitting?

Consulting firm Accenture originally copyrighted the term in the mids, but it has since fallen into generic use. A 3PL can scale and customize services to meet customers’ needs based on their strategic requirements to move, store, and fulfill products and materials. A 4PL company does not stop at outsourcing logistics services but also outsources the management logistiics said services.

The interviewers were polite, respectful and very professional. After all, if you can logisticx practically anything from Amazon in two days or less, customers don’t understand why they can’t receive goods from other shippers in the same time frame. Surgeons may order several sizes of a product because they don’t know precisely which one they’ll need at the start of the procedure. We are a non-asset logistics provider who provides technology and services focusing on over the road motor freight management, such as making sure shippers pick the correct freight classspecifically offering a TMS with services around carrier relationship and inbound freight programs.

Fulfillment by Amazon is also a type of third-party logistics provider. What are these PLs, Anyway?

A 4PL offers the strategic vision to create a new supply chain network that efficiently manages the flow of product across all platforms. In partnering with an innovative leader, your supply chain solutions can be optimized for maximum customer value with a competitive advantage.

Typically, a 4PL will have integrated technology offerings that deliver a high level of visibility into the supply chain for tactical and strategic analysis. I had the opportunityto monitor the survey calls on several occasions and was impressed with the Marketing Alternatives staff members assigned to our project.

The 1PL approach is typically used by large companies that have the volume and infrastructure to manage their entire supply chain internally. A freight forwarder who works efficiently with excellent information flow and is always aware of your cargo status can be a trusted and valued resource.

Certainly, 3PL is one of the most well-known terms to someone in the supply chain. What is a perpetual inventory system? In some cases, the role of 3PL and broker overlap, but typically a broker is used to engage trucking capacity for a specific shipment.


The days of the million-square-foot super regional DC may be over, as companies opt for shared warehouse space near major customer centers to speed up responsiveness. The most successful logistics partnerships seamlessly blend the flow of products and information flow, and that’s where our technology truly enables supply chain excellence. Another issue is the degree of dependency a 3PL can create.

Basically, the 4PL acts as the enterprise would if the supply chain functions were managed in-house. You will be able to unsubscribe at any time, and we will never sell your information to third parties. With a 3PL, there may be some aspects that you still have to manage.

For smaller companies, a 3PL can provide an immediate level of scale that would otherwise be cost prohibitive. In this article, I’ll share my best definitions, compare the differences between 3PL and 4PL, and explain how these solutions can support your unique supply chain strategy.

3PL vs. 4PL Logistics – Warehouse Anywhere

Subscribe now Please enter your email address below Join our list to stay up to date with the latest in supply chain logistics. Beween, any company that offers some form of logistics services for hire is known as a 3PL. This forward-deployed inventory model allows us to store your resources everywhere that you need them to be.

A 3PL relationship works well when the organization has beetween solid, high-performance supply chain strategy in place and requires support to execute the plan. What is Just in Time inventory management?

The 4PL company interacts with several logistics service providers to get the supply chain management job done for their clients. The service tech differencw stop at the hub to pick up parts or place an order for expedited delivery to the job site.