Fifth-Party Logistics (5PL)

What is Fifth-Party Logistics?

A fifth-party logistics, also known as 5PL, is a system where an organisation (a client) outsources all its supply chains to a logistics service provider. The 5PL company engages in planning, organising and implementing the client’s logistics solutions.

Through the various supply chain processes, 5PL employs the services of third-party logistics (3PL) and fourth-party logistics (4PL) at the same time, and it manages all the networks in the supply chain. Moreover, 5PL companies set prices and, in some cases, re-negotiate the already determined price.