What are 3PL and 4PL Logistics Services?

What Are 3PL and 4PL Logistics Services?

Logistics terminology is quite confusing for anyone who understands layman’s language. There are distinct parties involved in logistics, i.e. Party Logistics. The numbers in this regard begin from 1PL to 5PL. We are providing a simple overview of 1PL to 5PL for proper clarification of these terms. Please check out the forth-given definition of all 5 five terms-

  • 1PL stands for the manufacturer, i.e. the farmer in the case of the fresh produce. 
  • 2PL stands for transportation as well as storage, i.e. the courier delivery of the product from the production to stores. 
  • 3PL denotes the role of logistics service providers. These companies have fleet trucks and transportation mediums to fulfill the logistics work. 
  • 4PL signifies supply chain management, wherein all the manufacturer's work is outsourced to the logistics company. 
  • 5PL denotes the solution optimization and complete business solution that enables the logistics company to take care of the business from production to delivery

Now that you are clear about the party logistics, it is easier for you to dig deeper into understanding the functionality of 3PL and 4PL. In the next step, we will get well-versed with full-fledged knowledge of 3PL logistics service

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