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Difference 3PL and 4PL?
Joseph Ngo
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Difference 3PL and 4PL
Roland Spijker
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Terms used for the Levels of Logistic Outsourcing:
- 1PL = in-house executed logistics. Logistic …design / tendering / evaluation + …chain-coordination + …execution, assets property are all performed by the shipper (manufacturer),
- 2PL = 2nd party logistics. Logistic …design / tendering / evaluation + …chain-coordination are done by the shipper. But … execution, assets property are performed by a transporter or warehouse supplier, etc.;
- 3PL = 3rd party logistics. Logistic …design / tendering / evaluation by shipper. Chain-coordination by logistic supplier. Execution, assets property by logistic supplier and/or 3rd parties as subcontractor(s).
- 4PL = 4th party logistics. Logistic …design / tendering / evaluation by logistic supplier. Chain-coordination + …execution, assets property by logistic supplier and/or 3rd parties as subcontractor(s).
In practice only few parties will outsource to 4PL level because it overlaps core-competencies of the shipper: it's commercial strategy. Forwarders and integrators will often perform in 3PL role for end-customers in the market.
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Special Interest Group Leader
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