13 Feb Learning to differentiate between a third party logistics (3PL) and fourth party logistics (4PL) can get pretty confusing and is already a highly. 5 Mar 3 PL or 3rd Party logistics are simply partner Companies that take care of the Now, the point to be noted here is that in the above example the 3PL is only. 18 Feb There is often a fair amount of confusion and debate around the difference between 3rd Party Logistics (3PL) and 4th Party Logistics (4PL).

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And what is 4PL? Terms of Use Privacy Policy. What Is The Difference? Logisticd, 4PL companies have no way of transportation or warehousing, but rather use the transportation and warehousing difference between 3pl and 4pl logistics of a 3PL company. They offer all the services listed above and more, and operate on a global scale.

Third-party logistics companies handle physical distribution and logistics. I had the opportunityto monitor the survey calls on several occasions and was impressed with the Marketing Alternatives staff members assigned to our project.

While a 4PL is sometimes described as non-asset-owning service provider, diffference role is to provide broader scope managing of the entire supply chain.

4PL vs. 3PL

They assume many of the same roles as third-party logistics 3PL providers, but have much broader responsibility and accountability in helping the customer reach its strategic goals. Hence, there could be many more logistic service loglstics offering enhanced services, as these 3PLs and 4PLs compete to attract more businesses.


Transparency is key for 4PLs that may also function as a 3PL. Being in the supply chain industry, you see a lot of terms and abbreviations.

3PL vs 4PL: What are these PLs, Anyway? Layers of Logistics Explained

Learning the difference between a third party logistics 3PL and fourth difference between 3pl and 4pl logistics logistics 4PL as well difference between 3pl and 4pl logistics 1PL and 2PLand the rise of even Fifth Party Logistics 5PLs is both confusing and highly debated among those in the supply chain industry. As an LLP, a 4PL uses its high level of visibility, real-time information, communication abilities and broad knowledge to align 3PLs, customers and service providers.

The 1PL approach is typically used by large companies that have the volume and infrastructure to manage their entire supply chain internally.

Any party having goods moved from their place of origin to their new place is considered to be first-party logistics provider. What is inventory kitting? The challenge that businesses face is in determining a reliable and efficient logistics service provider to support their needs.

Prior to this role, he was vice president of sales at Penske Truck Leasing. What are these PLs, Anyway?

Let me know in the comments below. From a client perspective, this means 4PLs take more control and ownership of the processes under their jurisdiction. Steve Norall August 8, 41 Comments Logistics. There difference between 3pl and 4pl logistics exceptions to this, of course. Simply put, the entire logistics and distribution process is managed internally by the business.


What 4PL is, is still heavily debated, and there are other definitions out there, but here is one of the more popular ones. Typical 2PLs would often be shipping lines which own, lease or charter their ships.

A 4PL typically directs every moving part within the customer’s supply chain and serves as a single point of contact for all parties involved, says Moses. Join 30, Plus Subscribers! When a 3PL transitions to a 4PL, it changes the type of information the provider may access. Norall oversees all aspects of driving new business difference between 3pl and 4pl logistics the Cerasis brand through strategic partnerships.

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

What would you call us, given that knowledge? When this happens, ADLI Logistics asks to deal with the 4PL’s client directly, as we prefer to be involved in providing the customer service to the client, rather than the 4PL.

Start my free trial now. Schedule a Pick Up — Ext. Optimize transportation operations Coordinate suppliers Integrate supply chain technologies Synchronize inbound logistics and outbound logistics flows Model and manage distribution networks As an LLP, a 4PL uses its high level of visibility, real-time information, communication abilities and broad knowledge to align 3PLs, customers and service providers. ABC inventory management The bullwhip effect.