Difference 3PL and 4PL?


 
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Difference 3PL and 4PL?
Joseph Ngo, Singapore
What is the difference between a 3PL & a 4PL?
 

 
Difference 3PL and 4PL
Roland Spijker, Netherlands
Terms used for the Levels of Logistic Outsourcing:
- 1PL = in-house executed logistics: logistic …design / tendering / evaluation + …chain-coordination + …execution, assets property = by shipper;
- 2PL = 2nd party logistics: logistic …design / tendering / evaluation + …chain-coordination= by shipper, …execution, assets property= by transporter, 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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