Third Party Logistics (3PL) involves outsourcing a company's logistics processes to an external operator, who acts as an intermediary, managing transport and storage. Fourth Party Logistics (
> SIGNIFICANT DOWSTREAM NETWORK DEALERS AND DISTRIBUTION ORGANIZATION WILL SUSTAINABLE INVENTORY PURSUE THIS STRATEGY
MARKET BASED STRATEGY
> LOGISTICS COSTS MAY NOT BE HELD AT THEIR LOWEST LEVEL
> ACTIVITIES RELATING TO CUSTOMER SERVICES
PROCESS BASED STRATEGY
> WORK IN PROCESSAND AN TO A FINISHED GOODS STATE
> ARCHIEVE THE MAXIMUM EFFIENCY IN MOVING GOODS FROM RAW MATERIAL
4PL
A 4PL operator therefore manages the client's entire supply chain and takes the initiative in designing and optimising the supply chain
A 4PL operator does not carry out physical transport or warehouse activities, these are outsourced to a 3PL operator.
With 4PL or Fourth Party Logistics, supply chain management is provided. Think for example of consulting, planning, management, or warehousing.
3PL
The 3PL acts as an intermediary between the client and its customers, organising transport activities and storage facilities.
3PL or Third Party Logistics consists of outsourcing a large part or even the entire logistics process of a company to an external logistics operator.
2PL
Companies that offer 2PL services can be considered a logistics operator since, in addition to transport, they are also responsible for the storage of goods.
2PL or Second Party Logistics is often the first step in outsourcing logistics tasks including transport.