3pl And 4pl Understanding The Difference

By Author: Arvind M
Total Articles: 2
Comment this article

In India, almost everyone is aware of third-party logistics (3PL) services. However, when it comes to fourth-party logistics (4PL) services, people often tend to get confused and cannot differentiate between the two. The reason being, there is a thin line between the two. Although they sound similar and are used to businesses for logistics and warehousing services, they do have different functions.

What is the key difference between 3PL & 4PL service providers?

The key difference between 3PL and 4PL is that third-party logistics providers manage your shipments whereas the entire supply chain is managed by fourth-party logistics providers.

With services like warehousing, packaging, invoice generation, inventory management, etc, a 3PL provider's job is just at the managerial level. However, a 4PL provider takes over the responsibility and control of the complete supply chain.

What is third-party logistics?

The process of outsourcing logistics processes such as warehousing, order fulfilment, inventory management, etc, is called 3PL or third-party logistics. They offer other services ...
... such as consolidation to meet customer needs.

It is very important for any company to manage their logistics carefully in order for business expansion and that is what 3PL providers do. They make the whole logistics process more efficient and transparent so that company owners can focus on business expansion.

3PL Key Services -

- Warehousing
- Inventory management
- Transportation
- Cross-docking
- Freight forwarding
- Packaging

What are the key Advantages of third-party logistics (3PL)?

With innovative strategies and the use of latest technology, a 3PL provider can take any business to greater heights by transforming your business dynamics through cost-effective, result-oriented methods and techniques.

They offer flexible and scalable services to meet the customer's demands so that your customers are always happy, resulting in better business opportunities for you.

What is fourth party logistics (4pl)?

The process of handling the logistics as well as overall management of a company's supply chain is called fourth-party logistics or (4PL). In 4PL, a client gives the complete control and responsibility of the entire supply chain to the 4PL provider. They also oversee warehousing, shipping, transportation, and legal paperwork. 4PL providers are the interface between all aspects of the supply chain and the client organization.