14 Jul Difference between 1PL, 2PL, 3PL, 4PL & 5PL! The rise of 3PL in logistics and supply chain is now well evident but how far has 4PL. 5 Mar 3 PL or 3rd Party logistics are simply partner Companies that take care of the logistics services of the parent company. For e.g. If my e retailing company deals in. Third Party (3PL) and Fourth Party (4PL) Logistics: What’s the Difference? accountability of 4PLs is the major differentiating factor between 3PLs and 4PLs.

Author: Kazitaxe Mikarg
Country: Zambia
Language: English (Spanish)
Genre: Photos
Published (Last): 19 August 2011
Pages: 271
PDF File Size: 7.43 Mb
ePub File Size: 18.28 Mb
ISBN: 906-1-14820-716-5
Downloads: 65898
Price: Free* [*Free Regsitration Required]
Uploader: Meramar

MAI has proven to be an excellent outsourced solution and a true business partner. While the 3PL model has lgoistics successful for decades, there are some things to consider.

Third Party (3PL) and Fourth Party (4PL) Logistics: What’s the Difference?

A field service environment is different than a manufacturing situation and requires unique solutions. Betweenn more information fill out our contact form or call However, it comes with restrictions in terms of allowable products and packaging requirements, and services are more limited than some other 3PLs.

Join 30, Plus Subscribers! Layers of Logistics Explained. So, loosely, we belong somewhere in between 3PL and 4PL.

At times, a major 3PL company could form a 4PL organization within its structure. loigstics

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

What is a perpetual inventory system? Additional services may be performed such as crating, boxing and packaging to add value to the supply chain. To know more about MAI’s expertise in contact center and fulfillment services, please drop in an email now!

If your company is dealing with an increasingly complex supply chain and struggling to meet customer expectation for faster response, then an innovative 3PL or 4PL may be the best solution for you. There are exceptions to this, of course.

Transportation Warehousing Cross-docking Inventory management Packaging Freight forwarding A 3PL can scale and customize services to meet customers’ needs based on their strategic requirements to move, store, and fulfill products and materials. While a 4PL is sometimes described as non-asset-owning service provider, their role is to provide broader scope managing of the entire supply chain. For the medical device industry, visibility and value-added delivery processes are top priorities.


A 4PL can manage the complex chain of custody requirements and delivery schedules to meet physician’s requirements and reduce inventory costs.

The Warehouse Anywhere system can optimize your inventory per location to ensure stock is on hand in areas of highest demand. The term “third-party logistics provider,” or 3PL, has been around since the s. Because MAI built the program for scalability, the increased demands were quickly taken in stride. ADLI Logistics is contacted loyistics many 4PLs looking to enlist our services for a customer of theirs, but ADLI Logistics prohibits double brokering, as it is not in the best interest of any prospective client.

Parts location and inventories are visible to all the techs in differrnce region, reducing the need for trunk stock. We are a non-asset logistics provider who provides technology and services focusing on over the road motor freight management, such as making sure shippers pick the correct freight classspecifically offering a TMS with services around carrier relationship and inbound freight programs.

This decentralized, hyper-connected model provides the responsiveness needed to meet customers’ expectations for timely delivery. The most common models now are 3PL and 4PL and we’ll look at how each one can help solve supply chain challenges.

Error (Forbidden)

MAI takes great care of all of our shipping needs, so I can focus on everything else that needs to be done. The days of the million-square-foot super regional DC may be over, as companies opt for shared warehouse space near major customer centers to speed up responsiveness.

Logistivs, 3PLs are a logistics support system while 4PLs are more involved in driving business performance. In this case, the 4PL may manage the lohistics with the farmer to produce more eggs as the grocery store’s inventory decreases.

We handle all reverse logistics and restocking of unused items. The 1PL approach is typically used by large companies that have the volume and infrastructure to manage their entire supply chain internally. A freight forwarder who works efficiently with excellent information flow oogistics is always aware of your cargo status can be a trusted and valued resource.


Not only do customers enjoy a higher level of service, we are now able to identify — and resolve — store issues that have resulted in lost opportunities in the past. Perhaps the most significant caveat is the lack of direct oversight and control. What are these PLs, Anyway? What is a Fourth-Party Logistics Provider? For one medical-device manufacturer Warehouse Anywhere developed anc network of inventory centers to service hospitals and surgery centers.

Subscribe now Please enter your email address below Join our list to stay up to date with the latest in supply chain logistics. The 4PL can manage those relationships, as well as optimize the network to use parcel carriers or couriers to support e-commerce, rather than LTL or truckload services. For brick-and-mortar locations, the forward deployment supports same-day inventory replenishment as well as online order fulfillment from the same location.

On the other hand, 3PLs are typically focused on logistics functions. My team loves it. Most 3PLs offer a bundle of integrated supply chain services, including: That means some activities will take place outside of your direct supervision.

To subscribe to our blog, enter your email address below and stay on top of things.

Recently, we’ve seen great success in acting as a 4PL in managing forward-deployed inventories in a variety of vertical markets. A logistics provider that only transports goods over a certain part of the supply chain could also be classified as a 2PL.

Generally, 4PL companies have no way of transportation or warehousing, but rather use the transportation and warehousing services of a 3PL company. What is ERP inventory management?

Posted in Sex