of storage space and a comprehensive fleet of trucks, ESA is the expert you can count on in international freight. Seyed-Alireza Seyed-Alagheband, in Logistics Operations and Management, 2011. In other words, the manufacturer outsources the management of the logistic operations to the 4PL. A third-party logistics partner (3PL) can help alleviate the stress of a small business's supply management, creation and distribution. Fourth Party Logistics (4PL) is the integration of all companies involved along the supply chain. 4PL (Fourth-Party Logistics) providers are an advanced version of 3PL, with a more comprehensive approach to logistics management. A comprehensive directory of non-asset based 4th party logistics companies from Logistics List a leading directory. An example of third-party logistics is when an Amazon seller utilizes a logistics company to store their inventory and fulfill FBM orders. They also monitor the operational and financial efficiency of the supply chain by handling said 3PLS. A 4PL company has. By counting the number of mediums used to transmit items from producers to retail locations in the marketplace, the difference in product transport mediation created this classification. A Fifth-Party Logistics Provider is a consultant one step above a 4PL. 2PL — Second-Party Logistics. Choosing a 3PL vs. Fourth party logistics (4PL) help manage your financial flow, as well as accounting, invoicing and invoice checking, in connection with your incoming and outgoing goods. Think for example of consulting, planning, management, or warehousing. e. Examples of this approach include shipping and trucking companies. What is third-party logistics (3PL)? Third-party logistics, commonly known by the abbreviation 3PL, is the outsourcing of e-commerce logistics processes to a third-party company. In its simplest form, fourth-party logistics is a model in which manufacturers hand over the entirety of the organisation and oversight of their supply chain to a 4PL provider. A novel fourth-party logistics (4PL) network design problem under uncertainty environment is studied in the current work. Using UpGuard's fourth-party risk module, you can automatically identify all of your fourth parties and mitigate the impact of their vulnerabilities on your sensitive data, thereby reducing the threat of supply chain attacks. Associations - APICS, ISM, CSCMP, WERC, Training & AcademiaWarehousing and Logistics Agreement For Cisco Global Hubs . Transportation cost analysis. For example, in 2017 a temporary worker was injured when they stood on the forklift. One of the most significant upheavals of the logistics industry is the emergence of a new generation of logistics service providers, called fourth party logistics (4PL). Fourth party logistics companies: Fourth. Ensuring you stay on track for tax time. 6th Edition. The term first-party. The logistics industry is constantly evolving. The 4PL is the main person that the customer speaks with. Effective October 29, 2023, until January 13, 2024, a Demand Surcharge will apply to packages shipped on all Canada domestic air and ground services and ground services. Control tower and network management services. In this regard, a 4PL provider can take a more consultative approach than a 3PL, while several 3PLs can also provide this service. A 4PL provider will be able to find 3PLs for you in the areas where you are getting business and provide helpful suggestions to maximize the efficiency of your business. Due to the increasingly competitive nature of the global market, the capability of controlling delivery time is becoming a significant advantage for enterprises. A 5PL company serves as a supply chain orchestrator, optimizing and harmonizing the functions of all parties involved in supporting a business’ logistics needs, including 3PL service providers. Transportation cost analysis. This includes fulfillment, transportation, and technology. Clean. A 4PL provider will typically allocates resources to a company in order to manage their supply chain. OCTOBER 17, 2022. The ultimate goal of technology in the Logistics Information Structure (LIS) is to provide real-time information to management. Generally, however, a 5PL provider looks beyond individual supply chains, focusing instead on wider supply networks. What is a 3PL? How Third-Party Logistics Providers Benefit eCommerce Brands. Example of Logistics. 5/28/2014. Here are the definitions of each type of logistics company, plus the main differences between them. A 4PL acts as a single point of contact between the company and various 3PLs, coordinating and managing the entire logistics operation. 3PL – A logistics provider, hired by the manufacturer, who manages carriers, as well as delivers services like fulfillment, warehousing, and other logistics. 1PL: 1st Party Logistics Image Source First-party logistics service provider is a firm or an individual that needs to have cargo, freight, goods, products or merchandise transported from point A to point B. ISBN: 9781285869681. Good examples are shipping and trucking companies. 5PL: Fifth-party logistics providers are often linked with your ecommerce provider. B. With the introduction and growth of ecommerce in the ‘90s and 2000s, the term 3PL has become ubiquitous, and 3PLs have expanded their services. According to The Insight Partners, the global 4PL market was valued in terms of revenue at US$56. all. Simply put, 4PL service providers take care of all the activities that. 2PL logistics operators usually work on a national level, even if they offer only standard services. This is where fourth-party logistics comes in. Image . The results show that using the fourth-party logistics model to promote the transfer of cargoes from road to rail can reduce the integrated cost of the transport network, reduce carbon emissions. The model requires the 4PL to plan, resource and build comprehensive solutions on behalf of the contracting client. a selection method was developed for selecting green 3PRLPs in a multi-attribute reverse auction for a loss-averse fourth-party logistics. 1PL, 2PL, 4PL, and 5PL. 2PL or Second Party Logistics Provider. S. The term comes from the military. Cross-border electricity companies tend to be. A 4th Party Logistics solution entails the use of an independent, or 'neutral,' lead logistics provider who acts as an agent. Fourth-Party logistics partners are also often brought in to manage multiple 3PL partnerships when a single third-party logistics company cannot offer full, end-to-end coverage of a client’s supply chain operational requirements. Third Party Logistics Practices: An India Perspective B. Ship Monk. What is a 3PL? How Third-Party Logistics Providers Benefit eCommerce Brands. 4PLs, or. Fourth party logistics or 4PL. Chapter 9 – Risks and Challenges 9. Our unique combination of experience, service, and technology allows us to provide logistics services that offer a high degree of reliability while remaining cost-effective. Shipping in China. 4PL companies don’t have the physical assets needed to move products through the supply chain, and so they manage logistics for their clients. This is reflected in managing and delegating parts of the supply chain. Basics of 3PL. When combined with the management of logistics activities, businesses that. This is the biggest difference in 3PL vs 4PL. Required fields are marked. 4 billion in 2019. Let’s explain this via our farm-to-grocery example again: A 4PL logistics is a single point of contact for an organization's transit management and shoulder responsibilities like managing infrastructure, resources, and technology, required to manage supply chain operations. To minimize the total cost, a two-stage stochastic programming model is. 1PL, 2PL, 4PL, and 5PL. 1PL means that the producer supplies their product themselves, essentially becoming the producer, supplier, shipper, and receiver of a good. Patterson. 4PL stands for fourth party logistics. Key Takeaways. Main Areas of Service Provided by Fourth-Party Logistics (4PL) A fourth-party logistics (4PL) provider is a supply chain management partner that goes beyond the traditional roles. 2. A lot of disruption that we've seen over the past couple of years has come through logistics issues. An example of inbound logistics includes receiving inventory into a warehouse straight from the manufacturer where it must be unloaded, checked and placed into the warehouse. Towards a classification of fourth party logistics (4PL). With 4PL or Fourth Party Logistics, supply chain management is provided. Second Party Logistics (2PL) Definition. This is reflected in managing and delegating parts of the supply chain. 7 billion by. 2. For example, a business that has its own warehousing. Logistic services encompass anything that involves management of the way resources are moved to the areas where they are required. The concept of fourth-party logistics service provider (4PL) was established in the mid-1990s. The term first-party logistics provider stands both for the cargo sender and. Advantages of 4PL. In our farm-to-grocery store example, a 3PL may be responsible for packing the eggs in cartons in addition to moving the eggs from the farm to the grocery store. Supply Chain Strategy: Get Ahead of Logistics Operational and Management Future Trends. The concept of a fourth-party logistics. View Show abstractTo be honest I think the terms 1PL and 2PL have been developed as an after thought once the term 3PL had been coined. In essence, 4PL stands for Fourth Party Logistics, a strategic evolution beyond 3PL. Third-party logistics (3PL): This category manages both outbound and inbound transportation requests in addition to warehousing. However, logistics is only sometimes used in relation to transportation. 2PL — Second-Party Logistics. g. Project management and business planning. A third-party logistics company (i. 56% during the forecast period. Transportation When it comes to transportation, 3PLs can engage. A 3PL manages outsourced logistics and distribution activities for a specific customer, while a 4PL manages customer 3PLs and provides complete visibility within a one-stop shop, says Don Klug, vice president of sales distribution center management, Penske Logistics. Deringer 888-612-6239 | ASSET/NON-ASSET: Both AREAS SERVED: Global MARKETS SERVED: Manufacturing, E-Commerce, Retail, Wholesale, Services/Government, Transportation LOGISTICS SERVICES: Lead Logistics Provider/4th-Party Logistics, Inbound Logistics, Supply Chain Finance (Payment. For example, a 4PL may be hired to manage the entire logistics. Due to this fact and the general strategy of the Kloepfel Group, to offer its customers tailor-made solutions in the field of logistics as part of the business process outsourcing (BPO) initiative, the company Kloepfel 4PL Solutions was founded. Each type offers different levels of control, cost, and expertise in managing logistics themselves. Fourth party logistics is when manufacturers outsource all of the operation and supervision of the supply chain and logistics to a singular external provider. “We’ve trained customers to expect that when they hit the order. Third party logistics or 3PL. 3PL management. Demand uncertainty and two types of disruptions, facility and third-party logistics (3PL) disruptions, are simultaneously considered. These providers manage the supply chain in its entirety by designing and implementing supply chain solutions. In our farm-to-grocery store example, a 3PL may be. In a nutshell, recruiting a 4PL company entails outsourcing the complete logistics. The 4PL provider oversees the supply chain from start to finish, acting as a single point of contact between the company and the suppliers, carriers, and 3PLs they. A 2PL is any business that focuses on transportation. Port operators and depot companies are good examples of 1PL providers. 3PL – Third-Party Logistics. Reduce dwell time and cut detention fees by 67% Request a free trial The world’s leading brands use Vector to manage their yard operations Your digital future begins with Vector Digitize the pickup and delivery process, providing supply chain partners real-time visibility into. Fourth party logistics—more commonly abbreviated as 4PL—is when a company uses an integrator that brings together resources, capabilities, and technologies to streamline the design and execution of a company’s supply chain. Like everything else, 4PL services come with their own set of pros and cons. 5PLs will also be in charge of managing a. Chapter 6 - Third Party and Fourth Party Logistics. The model of fourth-party logistics or lead logistics providers becomes more and more attractive to companies that are looking to grow their services. An example of an alternative kind of 4PL provider is Healthcare Logistics (HCL), which has operated in the Australian healthcare. LSP Freight forwarders, 3rd and 4th party logistics service providers Manufacturers, wholesalers, and retailers Carriers Trucking, rail freight, sea freight and air freight companiesIn logistics we outsource several activities like, transportation warehousing, distribution or even entire logistics management as well. Needs also change over time, and to adapt effectively, the response must be timely. Examples of 1PLs would be the cargo sender and the cargo receiver. Seyed-Alireza Seyed-Alagheband, in Logistics Operations and Management, 2011. Enter the 3PL. They bring a fresh set of ideas and the ability to implement technology that many of the old school 3PLs do not possess. 3PL is short for “third-party logistics. A novel fourth-party logistics (4PL) network design problem under uncertainty environment is studied in the current work. The 4PL supplier commonly offers a better perspective and outlook over the supply chain operations. Fourth-party logistics (4PL) is similar to 3PL, but it takes. A novel fourth-party logistics (4PL) network design problem with the objective of minimizing the overall cost under service time constraint and stochastic demand is proposed in the paper. 4PL có liên quan với 3PL và được phát triển trên nền tảng 3PL nhưng lĩnh vực hoạt động của nó rộng hơn, bao gồm các hoạt động của 3PL, các Dịch vụ Công nghệ thông tin và Quản lý các tiến trình kinh doanh. 4PL. A third-party logistics warehouse, or 3PL for short, is an outsourced business that takes care of a company’s supply chain and logistics operations. They are understood as asset-free system integrators who stand between their customers (usually OEMs) and other logistics service providers (often 3PLs) to ensure the coordination and organization of all business processes along the value chain. PDF | On Jun 29, 2022, Ilias Vlachos and others published The role of Third-Party Logistics Providers in managing international supply chain triads | Find, read and cite all the research you need. 4PL lead logistics providers are more than 3PL; they support companies in building their business strategy and managing their projects. Fourth Party Logistics (4PL) is the model of logistics whereby manufacturers outsource the organisation and oversight of their supply chain and logistics to a single external provider. Fourth-party logistics can move the needle on your ability to meet demand, deliver products to your customers, and grow. The narrative should not exceed 500 words, exclusive of the BCG Matrix. Note that not all 3PLs have the same business model. Logistics service providers typically range from in-house, first-party LSPs to complex fifth-party LSPs. A lot of disruption that we've seen over the past couple of years has come through logistics issues. Third-party logistics providers typically specialize in integrated operations of warehousing and transportation services that can be scaled and customized to customers' needs,. 4PL, or fourth party logistics providers, are companies that simply manage the entire process. In the 4PL model, the logistics provider acts just like a 3PL, with the added responsibility of managing the tasks itself. 3PL provides an extension of the logistics team that is actively present and participates in locations where there is a need for the customer to be represented (e. Towards a classification of fourth party logistics (4PL). Consequently, a 4PL takes over the entire operation and allows you time to grow and expand your business. 3pl’s sole focus is fulfilling daily operations. Examples of outbound logisticsD. The 4PL provider often provides the company with excellent strategic knowledge and control over its supply chain. The 4PL supplier commonly offers a better perspective and outlook over the supply chain operations. These processes. Before getting into the specifics of third-party versus fourth-party logistics, here’s a quick review of logistics terminology to put things in context: First-Party Logistics (1PL) – A model in which the retailer sends products from one location to another. The 4th Party Logistics solution involves an independent, or ‘neutral’ lead logistics provider, effectively acting as an agent. Some great examples of 2PLs are UPS and FedEx, two shipping businesses. 4. A fourth-party logistics provider that manages all aspects of a supply chain and serves as the single point of contact to the client and third-party service providers. With the increasingly competitive market in the logistics industry, it may be crucial to increase market share by adjusting freight prices. There is an increasing attention on the development of the fourth party logistics (4PL), which strives to the integration and management of the logistics supply chain. Some of the key differences between 3PL vs. Therefore, at a strategic level, both cluster and inter-cluster standards must be developed, used and promoted. A 4PL will handle everything from transportation, freight delivery, and last mile logistics to inventory level, warehouse services, and order. A 3PL offers outsourced logistics support through a variety of shipping, warehousing and specialty solutions. They are considered 4PL or 7PL, which combines 4PL with 3PL eCommerce fulfillment. A novel fourth-party logistics (4PL) network design problem with the objective of minimizing the overall cost under service time constraint and stochastic demand is proposed in the. Between the rise of small business and impact of the COVID-19 pandemic, third-party logistic companies have become increasingly important. This approach centralises all logistics operations under one umbrella, providing the company with a single point of contact for all its logistics needs. Third-party logistics companies offer many of the same services as order fulfillment. Understand how Fourth-Party Logistics fits into the supply chain. To ensure the sustainability of the supply chain, a fourth-party lo-. — Getty Images/yoh4nn. e. They define 4PL in the following manner: ‘A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions’ [1]. Conclusion. Fourth-Party Logistic Providers act as consultants. 3PLs focus more on daily operations, while 4PLs function at the optimization and integration level. A fourth-party logistics provider, or 4PL, represents a higher level of supply chain management for the customer. Lead logistics providers (LLPs), also referred to as fourth-party logistics (4PL) providers, have a broad role within the supply chain. It also integrates data across suppliers and provides visibility on inventory, transportation and performance. The global fourth party logistics market was valued at $57. 4PL meaning and definition. Usually the 4PL performs a role as a company leader of different 3PL working for a customer and/or supply chain. A 4PL isn’t just a 3PL with something extra stuck on top. In terms of comprehensive risks, the ranking from best to worst is the following: fourth-party logistics, international express, international postal business, and overseas warehousing. The four following. EXECUTED BETWEEN (HEREINAFTER REFERRED TO AS _____. 94 bn during 2022-2027, accelerating at a CAGR of 5. J. Third-Party and Fourth-Party Logistics. Second Party Logistics or 2PL. The short-term thinking with collaboration agreements purely on the basis of cost-related reasons is replaced. Published: 10 Apr 2019. For example, a 3PL company can store your inventory, pack it and ship it when required on your behalf. In the introduction, we mentioned the consolidation within the industry as big retailersSelect two examples for third-party logistics and fourth-party logistics, explain your examples of how you categorize between two. . This enables the companies to focus on their core business competency. Both 3PL and 4PL used to perform the same duties, the difference between 3PL and 4PL is that the latter is non-asset-based. Depending on the scope of the supply chain, the 4PL may be responsible for coordinating the actions of other 3PLs. Collaborate with suppliers, vendors, third- and fourth-party logistics (3PL and 4PL) partners, and experienced advisors to develop environmentally-friendly procurement protocols and eco-friendly shipping options. First Party Logistics or 1PL. 2013, 1, 104–116. Second-party logistics (2PL) is a business that owns assets, like planes or vehicle, to transport products from location A to location B. An experienced and reliable 4PL provider will bring value and a reengineered approach. Even more complex, some 3PLs may offer different degrees of service, such as a 4PL model that blends a shipper’s existing network and fleets with a 3PL’s technology and solution, as discussed in this third-party versus fourth-party value article. Logistics are an essential part of your supply chain management. 4PL is a more sophisticated kind of supply chain management that emphasizes optimizing. Fourth-Party Logistics (4PL) – A provider that outsources the management of logistics activities in addition to the execution of the supply chain. 4PLs can effectively coordinate the activities. 1% and 5. Logistics services UNCTAD “Fourth-party logistics (4PL) goes one step further than 3PL and involves the integration of all companies involved in the supply chain. A novel fourth-party logistics (4PL) network design problem under uncertainty environment is studied in the current work. In recent years, the successful operation of the fourth party logistics (4PL) in practice has gradually demonstrated that it is an effective mode to integrate the complicated resources of a supply. 4PL. 5PL service providers typically don’t own any physical assets but use. Please click on the link to watch the video on "Logistics, Transpo. J. The transportation of necessary resources at the venue comes under Event Logistics. We examined the investment and pricing strategies adopted by the 4PL for the. Results of the numerical examples and a real-life case illustrate. Among the 1PL 2PL 3Pl 4PL and 5PL, the 4th party logistics is a new concept which is coming into the market, and it involves employing an overseer for managing an entire supply chain of a company. 2 billion) Third party logistics 3. Employees: 140,000. 3. Example: Third-party logistics (3PL) takes all the logistic activities of company A to shift to multiple locations. 3PL warehouses manage 3PL stock, hold, and. a general contractor that coordinates the activities of third-party logistics providers. Examples of 2PLs include shipping lines which operate the ships, airlines that operate the planes and hauling companies that operate vehicles. Answers. These parties could be the manufacturer, the distributor, the retailer, or any other organization that needs logistics services. 4PL: Fourth-Party Logistics In a 4PL model, an organization outsources the management and execution of supply chain-wide logistical operations. This optimization is expressed in several ways. Good examples are shipping and trucking companies. Healthcare Logistics . The problem is studied using a two-stage game. Reviewing key business reports. Has physical logistics possibilities. While a 3PL service might only be responsible for a single task in the supply chain, a 4PL service is tasked. These are companies independent from the buyers and sellers but takes over some of their logistics function. Due to the problems such as the excessive proportion of road transport and extreme carbon emission situation of China’s transport structure adjustment, this paper combines the fourth-party logistics with the bulk cargo green transport. Chen,J. A 4PL is a strategic partner and single point of contact that can essentially run and optimize all or a part of your supply chain, manage multiple 3PL providers and other supply chain. Examples of 2PLs companies are carriers, freight forwarders, and warehousing services providers. For example, a manufacturer packing and arranging their own freight for transport to a customer would be considered first-party logistics (1PL). The terms fourth-party logistics (4PLs) and lead logistics provider (LLP) were introduced in 1996 by Bob Evans of Arthur Anderson (now Accenture) and are defined as follows: “A 4PL is an integrator that assembles the resources,. This is the primary distinction between a 4PL and a 3PL provider. A fourth-party logistics firm (4PL) deputes a third-party logistics firm (3PL) to complete the tasks received from clients. In this study, this “balancing” advantage is investigated, and a novel network is proposed for 4PL platforms. The problem of dynamic network design considering multi-period pricing has become a new challenging problem in fourth party logistics (4PL) operation mode. FOR CISCO GLOBAL HUBS. They offer their own (and external) logistics resources including trucks and warehouses. They assume many of the same roles as third-party logistics. Key examples of 3PL: The major functions. Using 4PL allows companies to focus on customers' needs. A 4PL provider serves as an integrator for a company. First-party logistics (1PL) are the simplest of all shipping methods. Chapter 7 - Global Logistics Planning and Management. In this article, we will go into detail about the differences between 1PL, 2PL, 3PL, 4PL and 5PL in Logistics. 3 Logistics is the management of the flow of goods between the point of origin and the point of consumption in order to meet some requirements. • ECO4LOG: Development of an East border COrridor 4th party LOGistics. The fourth-party logistics service provider approach to support sustainable development goals in transportation–a case study of the German agricultural bulk logistics sector. This could for example see a greater use of ‘Physical Internet’ (or ‘PI’) solutions, based on a move towards more standardised shipment sizes,. A transportation management system (TMS) is a part of supply chain management (SCM) focused on transportation logistics. 2PL – Second-Party Logistics. Fourth-party logistics (4PL) A fourth-party logistics provider is further involved in logistics management. What is 4PL? Also known as a lead logistics provider (LLP), a 4PL provider coordinates all the moving parts. Logistics services are a step beyond third-party logistics (3PL). Make international shipping easier for your business with Shipshere. A 4PL manages the complete supply chain, whereas a 3PL concentrates on logistics. (2) For the industrial chain they are in, correctly choose the logistics mode suitable for the industrial chain. 4PL generates supply chain solution by managing third party resources, technologies and skills. All forms of outsourcing logistics are expanding rapidly, but 4PL value is increasing at record-setting rates. We Are Your Storage & Logistics Solution. BUY. Sample use case scenarios for inbound, outbound and storage of business-to-business (b2b) and business-to-consumer (b2c) goods. The term 4PL is a term introduced by Accenture ( Li et al. 1) Refurbishment (Rent the Runway) 2) Outlet store (Motocard) 3) Product repair (Cosgra) 4) Cannibalization or recovery of parts (Surplus Motos) 5) Returns rate reduction (Espace des Marques) Reverse logistics: strategies for every need. [25] consider two test examples in which one is a real logistics network and the other is generated randomly. 3PL is a third-party logistics provider that involves 3 parties: a business owner (you), a carrier, and a logistics provider (3PL). After all, not only does the latter outsource the execution but also the monitoring of the logistic processes. 4PL encompasses all of the services of 3PL, as. Fourth-party logistics, also known as 4PL, is a model where the business owner outsources its supply chain and logistics to an external service provider. 4PL providers act as top-level supply chain strategists, managing everything from resources to technology to infrastructure. Fourth Party Logistics (4PL) Companies use a fourth party or 4PL logistics to outsource their logistics operations to a single partner. Below is a list of leading 4PL providers from across the world: Company : DHL Supply Chain. A 4PL also acts as the sole point of contact in your supply chain, but a 3PL only takes care. 4PL logistics companies leverage technology to plan, execute, and conduct compliance monitoring for their client's chain of supply. Definition. While their services are similar to a 3PL, they lack the physical means to move inventory through the supply chain themselves. Parties involved in 4th party Logistics are: Manufacturer; Logistic company (Distribution Team) Logistic company (Co-ordinating Team). [6] Feng,W. Logistics service providers help businesses manage their supply chains, including warehousing, inventory management, shipping and returns (reverse logistics). Abstract. Business Management 4 days ago. The report on the fourth party logistics. Determining the significance of a fourth party. 4PL solutions include all aspects of supply chain management such as procurement, storage, transportation, order fulfilment, and so on. Third-party logistics is the outsourcing of the logistics function to external organizations. For examples, some large companies hire 4PLs to manage highly sophisticated operations including the initial procurement of products, as well as. Although it looks simple, to be sold online or at the store every product has to go through a complex process that usually involves many parties, including:. 4PL companies don’t have the physical assets needed to move products through the supply chain, and so they manage logistics for their clients. Ship Monk. We have relationships and tech integrations with 3PLs all around the world. Just for the sake of being thorough, let’s have a look at what a 4PL and 5PL offer as well. 5PL – Fifth. Fourth party logistics, also known as 4PL, is. Fourth Party Logistics Network Design Considering Quantity Discount. If a 3PL is more like a bed and breakfast. Author: Robert M. 4PL (Fourth-Party Logistics) Order Fulfillment. The same local farm can hire a 2PL provider to transport their milk from their farm to the grocery store. 2013, 1, 104–116. According to the CSCMP, Difference between 3pl and 4pl are follows :. This could be a good option for some eCommerce brands,. Fourth-party logistics, as an integrator of the supply chain, has made some explora-tions in sustainability. What is third-party logistics (3PL)? Third-party logistics, commonly known by the abbreviation 3PL, is the outsourcing of e-commerce logistics processes to a third-party company. Conclusion. List includes DHL Supply Chain, UPS Supply Chain Solutions, DB Schenker, Kuehne + Nagel, CEVA Logistics, XPO Logistics, DSV Panalpina, Geodis & CH Robinson. There are other types of logistics companies, such as fourth-party logistics providers, which act as supply chain operations consultants. The fourth-party logistics routing problem (4PLRP) is an important issue in the operation of fourth-party logistics (4PL). 4PL were predicted as the wave of. Example: Suppose you are organizing your birthday party and the invited guests are 100 in number. Scott Koegler. In its simplest form, fourth-party logistics is a model in which manufacturers hand over the entirety of the organisation and oversight of their supply chain to a 4PL provider.