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Fourth Party Logistics (4PL)

What is Fourth Party Logistics?

Fourth Party Logistics, popularly known as 4PL, is the outsourcing of logistics operations to a single partner. The partner will be responsible for assessing, designing, building, running and measuring integrated supply chain solutions for the client. 

The 4PL advances the sourcing of logistics from Third Party Logistics (3PL) to 4PL. On behalf of the client, the single partner controls and manages the supply chain by overseeing the combination of warehouses, shipping companies, freight forwarders and agents.

The 4PL is different from 3PL for the following reasons.

  • 4PL is much suitable for medium-to-large businesses while 3PL is suitable for small-to-medium businesses.
  • 4PL manages and controls all activities within the supply chain network while 3PL focuses more on logistics operations.
  • 4PL maintains a single point of contact for its operations.

 

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