4PL Supply Chain Solutions

4PL refers to a fourth party logistics provider. A 4PL provider can offer more strategic insight to the overall processes of a company’s supply chain. In this way, the logistics provider becomes a true partner with the customer. The 4PL manages all the moving parts within a company, while the company itself executes all the tasks. This often includes both domestic and international supply chain systems.

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4PL VS 3PL

Fourth party logistics providers embody many of the same roles that 3PL (or third party logistics) providers do. However, the amount of responsibility and accountability provided by the 4PL is where the difference lies. Fourth party logistics providers are a liaison between clients and other service providers, while third party logistics providers work directly with clients. These two ideas help differentiate between the two types of providers. The fourth party logistic provider oversees the entire company’s processes. They focus on creating a cost effective supply chain. The fourth party logistics provider stands as a single point of contact for parties involved in the supply chain processes. A 3PL provider focuses mainly on distribution, warehousing, and fulfillment services of the company they are working for. A well known fourth party logistics provider would be UPS.

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