The Fourth-party logistics (4PL) market has witnessed a growth from USD million to USD million from 2017 to 2022. A fifth-party logistics, also known as 5PL, is a system where an organisation (a client) outsources all its supply chains to a logistics service provider. 4PL solutions include all aspects of supply chain management such as procurement, storage, transportation, order fulfilment, and so on. This could be a good option for some eCommerce brands,. What is a 3PL? How Third-Party Logistics Providers Benefit eCommerce Brands. Make international shipping easier for your business with Shipshere. (2020)Research and Discussion on the Development of Chinese Fourth Party Logistics Enterprises[J]. This is the biggest difference in 3PL vs 4PL. 4PL (Fourth-Party Logistics) Order Fulfillment. These logistics are often called Lead Logistics provider and they are often treated as a consulting company for. HQ: Bonn, Germany. Associations - APICS, ISM, CSCMP, WERC, Training & AcademiaWarehousing and Logistics Agreement For Cisco Global Hubs . Fourth Party Logistics (4PL) là Cung cấp Dịch vụ Logistics hậu cần bên thứ 4 hay Logistics chuỗi phân phối. 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. For example, a company may grow through mergers and acquisitions, so a supply chain that was manageable at one time outgrows the in-house capability. A fourth-party logistics provider who manages and directs all aspects of a supply chain on behalf of a client. The model of fourth-party logistics or lead logistics providers becomes more and more attractive to companies that are looking to grow their services. With 4PL or Fourth Party Logistics, supply chain management is provided. As a further example, the agricultural sector in the US transports 512,000,000 tonnes of grain per year: 60% of this by road transport, 28% by rail and 12% by water (Association. Customer Communications. 4PL – Fourth-Party Logistics. In the first stage, the. Healthcare Logistics . It is a supply chain management model wherein a logistics company handles all aspects of a company’s supply chain. DHL Supply Chain offers something called. Clean. 3PL vs. Fourth party logistic (4PL) services is also termed as supply-chain-as-a-service, where the 4PL providers integrates itself with the customer company’s logistics department. The fifth-party logistics is a recent. Comparison analysis of the 4PL network and the supply chain network shows that 4PL can deliver products within the prescribed time at a lower cost by cooperating with third-party logistics providers. The Indian logistics sector is among one of the fastest-growing and the most important sectors in the country, with a market size of over $200 billion. Good examples are shipping and trucking companies. To minimize the total cost, a two-stage stochastic programming model is. – Using a 4PL provider can help reduce costs, improve efficiency, and enhance overall supply chain performance. Being considered a 4PL is the recognition of an undeniable expertise and reputation that makes the difference in comparison with all other types of LSPs. Allyn allocates resources to your company who provide end-to-end shipment management, logistics expertise and consultancy support through a program of continuous improvement which. An example of third-party logistics is when an Amazon seller utilizes a logistics company to store their inventory and fulfill FBM orders. A 2PL is any business that focuses on transportation. The report. List includes DHL Supply Chain, UPS Supply Chain Solutions, DB Schenker, Kuehne + Nagel, CEVA Logistics, XPO Logistics, DSV Panalpina, Geodis & CH Robinson. For example, if you are a pharmaceutical organization, the benefits of your center will. There are more than five layers but this article will. 2PL — Second-Party Logistics. Due to the increasingly competitive nature of the global market, the capability of controlling delivery time is becoming a significant advantage for enterprises. Company]. 1PL – First-Party Logistics. 5PL is a recent addition to the logistics industry. For examples, some large companies hire 4PLs to manage highly sophisticated operations including the initial procurement of products, as well as. Fifth party logistics or 5PL. Results of the numerical examples and a real-life case illustrate the effectiveness of the proposed model and VSDDLR-SAA algorithm. Under fourth-party logistics (4PL), an industry innovator mode helps to balance the service satisfaction of both suppliers and customers. Fourth-Party Logistics Advantages. The 4PL can manage the entire supply chain of the company. Monczka, Robert B. The third-party logistics (3PL) business model is a popular way to expand or get started in the logistics industry. 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. Between the rise of small business and impact of the COVID-19 pandemic, third-party logistic companies have become increasingly important. The research paper presents a framework of fourth-party humanitarian logistics based on the four core components described by Christopher (2005) which was evaluated with a nonlinear approach called analytical hierarchy process (AHP). A 4PL company oversees and coordinates the entire supply chain process, including managing 3PLs, optimising operations, integrating technologies, and providing end-to-end. Services and components of 4PL include: Logistics. 4 Fourth-party logistics (4PL) example, Smith and Sparks (2004) highlight how Tesco’s Fourth-party logistics (4PL) relies on an outsourcing provider Internet-based data exchange system minimises grocery lead to neutrally manage the entire logistics process. The global 4PL Logistics Market is expected to grow at a compound. For example, Cainiao Network, founded by Alibaba in 2013, is a 4PL, and connects a network of logistics partners, warehouses, and merchants, by. 4PL: 4th Party Logistics 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. Categorizing transactions and reconciling accounts correctly. 3PL vs. This includes fulfillment, transportation, and technology. With the increasingly competitive market in the logistics industry, it may be crucial to increase market share by adjusting freight prices. 3rd Party Logistics (3PL) 4th Party Logistics (4PL) Carriers - LTL Truckload, Ocean, Intermodal, Rail, Air Freight Advisory / Management Consulting - Big 4, Niche/ Boutique Supply Chain Technology - WMS, TMS, RFD 10T, etc. The decision to use third-party logistics can only be strategic in nature. Labor shortages, for example, can put shippers in a pinch,. These providers offer a range of services, including warehousing, transportation, inventory management, and order fulfillment, allowing businesses to streamline operations, reduce costs, and focus on their. Fourth partyReverse logistics strategies. Fourth-party logistics providers (4PLs) take it to another level and handle phases of the operation that are generally. For example, many consulting companies such as Deloitte and Accenture provide 4PL. Third-party logistics is the outsourcing of the logistics function to external organizations. As reported by GlobeNewswire, “the global 4PL Logistics Market was estimated at USD 57. c. . Choosing between 1PL, 2PL, 3PL, and 4PL depends on the size, needs, and resources of your business. Third-party logistics, or 3PL, is the practice of outsourcing logistics and supply chain management functions to external service providers. For example, a farm that transports eggs directly to shopping markets or grocery stores is a 1PL. 2. Companies can also choose to outsource a single. A 3PL provider helps brands manage their inventory, transportation, and sales channels by taking on many of their logistical duties. GlobalTranz. In other words, a 4PL is responsible for the management of the entire supply chain network and acts as a strategic partner to the company. Needs also change over time, and to adapt effectively, the response must be timely. Chapter 9 – Risks and Challenges 9. 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. Fourth-party (4PL) Logistics Taking logistics outsourcing a step further, Fourth-party Logistics (4PL) providers manage and oversee a company’s entire supply chain model . FEBRUARY 20, 2023. Ship Monk. Fourth-Party logistic providers frequently check the whole flexibly chain. The report on the fourth party logistics. In the 4PL model, the logistics provider acts just like a 3PL, with the added responsibility of managing the tasks itself. 5PL company is committed to planning, organizing and implementing the client’s logistics solutions. This article will explain 7 types of logistics being used today: Inbound Logistics, Outbound Logistics, Reverse Logistics, Third Party Logistics (3PL), Fourth Party Logistics (4PL), and Global Logistics. Fourth party logistics or 4PL. They bring a fresh set of ideas and the ability to implement technology that many of the old school 3PLs do not possess. What is a 4PL? With 15 years of experience catering to third-party logistics (3PL) providers, we know that these businesses have historically been a driving force in the logistics services industry. Logistics service providers typically range from in-house, first-party LSPs to complex fifth-party LSPs. 838). ”. AUGUST 18, 2021. The term comes from the military. However, it is at a very nascent stage in India, though some domestic and multinational companies are trying to establish themselves in this sector. 2. 4PL or Fourth-Party Logistics: In a 4PL model, an organization outsources the management and the execution of logistics operations all across the supply chain. 5. 4PL logistics companies leverage technology to plan, execute, and conduct compliance monitoring for their client's chain of supply. 4PLs can effectively coordinate the activities. A 4PL also acts as the sole point of contact in your supply chain, but a 3PL only takes care. 3PL – Third-Party Logistics. The definition of Fourth-Party Logistics (4PL) is an integrator that assembles the resources, capabilities and technology of its own organisation and other organisations to design, build and run comprehensive supply chain solutions. Logistics Plus 4PL. WAREHOUSING AND LOGISTICS AGREEMENT . fourth-party logistics (4PL) company. J. This is an example of second-party logistics (2PL). Example of a 3PL in transport logistics: A 4pl service provider is a supply chain integrator. Fourth Party Logistics (4PL) is the integration of all companies involved along the supply chain. The 4PL provider often provides the company with excellent strategic knowledge and control over its supply chain. QuickBooks-certified bookkeepers can help you with: Automating QuickBooks based on your business needs. Add $50/month. 4PL generates supply chain solution by managing third party resources, technologies and skills. Click the Get a Quote button below or give us a call at (866) 989-3082 to get started. Amazon, for example, encourages customers to pick an “Amazon Day” that groups packages into fewer shipments, which saves. 4PL logistics are. ” A 3PL partner offers ecommerce logistics, including order fulfillment, warehousing, and inventory management. The emergence of fourth party logistics concept has essentially been a move towards removing all the bottlenecks from the complex global supply chain environment. Understand how Fourth-Party Logistics fits into the supply chain. Clean. TMS enables interactions between an order management system (OMS) and. A 4PL acts as a single point of contact between the company and various 3PLs, coordinating and managing the entire logistics operation. Carrier performance analysis. Carrier performance analysis. For 2. Simply put, 3PLs are used for the outsourcing of third-party warehouse and distribution needs for their customer’s inventory and fulfillment services. 23. The narrative should not exceed 500 words, exclusive of the BCG Matrix. Business Management 4 days ago. 5PL – Fifth Party Logistics Providers. In the example, there are. The global fourth party logistics market was valued at $57. 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. 3PL or Third Party Logistics. Two parties are now participating in this supply chain; the producer of the goods and the transportation (or other service) company. For example, a composite textile company may plan to limit its employees and personnel in textile-related jobs for more productivity and innovations. 4PL solutions include all aspects of supply chain management such as procurement, storage, transportation, order fulfilment, and so on. It has become a multi-layer service from first party to fifth party logistics. Choosing a 3PL vs. Third-party logistics providers typically specialize in integrated operations of warehousing and transportation services that can be scaled and customized to customers' needs,. Get a. Fourth party logistics is when manufacturers outsource all of the operation and supervision of the supply chain and logistics to a singular external provider. These service providers are charged with managing warehouses, shipping, and delivery partners. Cui et al. The ultimate goal of technology in the Logistics Information Structure (LIS) is to provide real-time information to management. The 4PL gives its clients a “control tower” view of their supply chains, overseeing the mix of warehouses, shipping companies, freight forwarders and agents. 2PLs can provide their services. Reviewing key business reports. 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. 2. However, it’s becoming increasingly more common to see companies providing fourth-party logistics (4PL) or even fifth-party logistics (5PL). the decision to use third-party logistics can only be strategic in nature c. 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. Simply put, 4PL service providers take care of all the activities that. Univ. To ensure the sustainability of the supply chain, a fourth-party lo-. In this costing template you will get access to: An easy-to-follow template to simplify the complex pricing of third party logistics (3PL) services and a process of comparing your options. Author: Robert M. For example, a company may hire a 3PL to handle the shipping, storage, and delivery of products to customers. Removing one level of warehousing, for example, will most likely increase the number of. The 4PL assembles and manages all resources, capabilities and technology of an organisation’s Supply Chain and its array of providers. They coordinate and oversee the activities of all partners to ensure alignment with your business goals. Fifth-party logistics (5PL) Fifth-party. “The main difference between a 3PL and 4PL is the control and. Amidst growing competition and rapidly changing market conditions, you need a lead logistics provider to manage your supply chain partners. 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. 9 billion in 2021, and is projected to reach $111. 9 billion in 2021 to $111. 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. 4PL generates supply chain solution by managing third party resources, technologies and skills. Furthermore, they can provide you with real-time data and insights on your supply chain performance to monitor and measure key metrics. 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. One of the greatest generals in history and the 34th US President, Dwight D. 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. 2PL — Second-Party Logistics. Examples of hidden. They outsource most or all of the logistics operations. (2016)Study on the Development Necessity of Fourth-party Logistics Based on Supply Chain Management Thinking --Taking Cainiao Logistics as an Example [J]. Different levels of LSPs provide different services and maintain varying. The other benefits listed are related to 3PL providers. 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]. According to a new report, the global third-party logistics industry is projected to reach a size of $1. Ship Monk. a common cause of third-party logistics failure is unreasonable and unrealistic expectations e. , 2003, p. The fourth party logistics also has a lot to offer in the management of inbound raw material supply, dynamic logistics, demand driven logistics, and global orchestrator. A 4PL provider is an integrator that manages all aspects of the supply chain. In a nutshell, recruiting a 4PL company entails outsourcing the complete logistics. In 4PL logistics, one integrator or service provider serves as the client’s single point of contact and is charged with managing and optimizing the entire supply chain. 2 Fourth party logistics providers: 4PLs In 1996, Accenture™ fi rst coined and registered the term 4PL as a trademark (Li et al. Generally, however, a 5PL provider looks beyond individual supply chains, focusing instead on wider supply networks. 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). A 4th Party Logistics solution entails the use of an independent, or 'neutral,' lead logistics provider who acts as an agent. และ 5PL (Fifth Party Logistics) หรือผู้ให้บริการโลจิสติกส์บุคคลที่ห้า ทำหน้าที่เป็นผู้วางแผน ผู้รวบรวม จัดหา บริหารความมีส่วนร่วมให้แก่. They can either have their own fleet of shipping vehicles, or they may work with an external carrier network. Fourth-party logistics is an elite outsourcing capability that is shared by many a common 3PL. Examples of 3PL Companies for eCommerce and Small Businesses. “We’ve trained customers to expect that when they hit the order. A fourth-party logistics provider holds strategic insight over the supply chain. Fourth Party Logistics, popularly known as 4PL, is the outsourcing of logistics operations to a single partner. 3PL vs 4PL: Which One Is Best for Your Business GoShip Blog. 4PL: 4th Party Logistics This new concept was established in the mid-'90s. Third party logistics or 3PL. According to The Insight Partners, the global 4PL market was valued in terms of revenue at US$56. These parties could be the manufacturer, the distributor, the retailer, or any other organization that needs logistics services. A 5PL will plan, organise and implement a client’s logistics solutions, taking all elements of supply. Fourth-party logistics, also referred to as a Lead Logistics Provider (LLP), refers to a single service provider that manages all aspects of a customer's supply chain and acts as a single point of contact between the customer and multiple other logistics service providers and. They assume many of the same roles as third-party logistics. 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,. You might consider freight forwarders as overall experts, but 3PL services include individual steps along the supply chain. The term is often used interchangeably with fulfillment warehouses or fulfillment centers. Results of the numerical examples and a real-life case illustrate. In some scenarios, the 4PL will hire a 3PL and oversee activities to ensure everything runs smoothly. Ready to see. This paper uses demand scenarios to describe. A 1PL first-party logistics provider is a company or individual that needs to have cargo, freight, goods or products transported from one point to another. The transportation of necessary resources at the venue comes under Event Logistics. OCTOBER 17, 2022. 3PL providers offer logistics services that include warehousing, inventory management, order fulfillment and shipper services, and clients can select some of those services or opt for all of them. 4PL – Fourth-Party Logistics. To streamline its logistics. Project management and business planning. If a 3PL is more like a bed and breakfast. There are other types of logistics companies, such as fourth-party logistics providers, which act as supply chain operations consultants. So how do you choose between 3PL and 4PL? 3PL or third-party logistics provides services such as inventory storage, inventory management, freight. For example, if company ‘A’ has contracted logistics company ‘B’ for distributing their goods. To put it simply, a 3PL or a third party logistics company is an outside agency that carries out the shipping and distribution processes in an eCommerce business. Inbound logistics can also be outsourced, except outbound processes require 4PLs aka fourth-party logistics companies that manage not only the distribution network but also the entire supply chain, which includes suppliers and any 3PL partners involved. Fourth-party logistics, or 4PL, is a business operating model in which the supply chain management and logistics are completely outsourced to one outside service provider. 4PL stands for fourth party logistics. Examples of 1PLs would be the cargo sender and the cargo receiver. The 4PL becomes your single point of contact in the supply chain. • ECO4LOG: Development of an East border COrridor 4th party LOGistics. The service provider often comes into contact with the manufacturer and the supplier. Examples are courier, express and parcel services; ocean carriers, freight forwarders and transshipment providers. Eisenhower, believed that logistics was the key to winning wars. A 4PL provider will typically allocates resources to a company in order to manage their supply chain. Company] for clients similar to [Client. Demand uncertainty and two types of disruptions, facility and third-party logistics (3PL) disruptions, are simultaneously considered. For example: An incorporated AI could monitor the whole. The partner will be responsible for assessing, designing, building,. An experienced and reliable 4pl service provider will bring value and a reengineered approach to your organisation as it will manage the logistics process. The problem is studied using a two-stage game. Second party logistics (2PL) entity is a type of company that providing an array of modes of transportation for a delivery purpose. This gives brands access to resources they wouldn't have otherwise while also giving them more. With the Fourth Party Logistics model, however, long-term contracts are usually concluded, which can make it difficult for the outsourcing company to regain control quickly. FOR CISCO GLOBAL HUBS. 4PL offers a higher level of effective supply chain management to customers, which allows manufacturers to completely outsource their logistics process to external professionals for better. Key examples of 3PL: The major functions. This has brought about the rising need for 3PL (third-party logistics) and 4PL (fourth-party logistics). All forms of outsourcing logistics are expanding rapidly, but 4PL value is increasing at record-setting rates. A third-party logistics company (3PL) is a service provider that either arranges or handles a variety of supply chain functions for a business. The term first-party. Fourth-party logistics, as an integrator of the supply chain, has made some explora-tions in sustainability. , at origin with the vendors). For example, a farm that transports eggs directly to shopping markets or grocery stores is a 1PL. Another example of a 3PL provider is a company that ships products from a factory in China to a warehouse in the US, packages and labels those products for Amazon FBA, then ships them into the Amazon. An example of an alternative kind of 4PL provider is Healthcare Logistics (HCL), which has operated in the Australian healthcare. Logistics service providers help businesses manage their supply chains, including warehousing, inventory management, shipping and returns (reverse logistics). [4] presented 4PL routing problem (4PLRP) model with uncertain delivery time. As fourth party logistics (4PL) has the power to integrate the supply chain, from the beginning of the 21st century, it has attracted more and more attention in many fields. 4PL lead logistics providers are more than 3PL; they support companies in building their business strategy and managing their projects. 3PL providers). Here are some well-known examples of 4PL companies: Amazon: As one of the world’s largest e-commerce platforms, it is one of the most well known examples of 4PL. Second-party logistics (2PL) is a business that owns assets, like planes or vehicle, to transport products from location A to location B. Most companies prefer 3PL services as they can handle the entire supply chain with live order tracking. In this article, we will go into detail about the differences between 1PL, 2PL, 3PL, 4PL and 5PL in Logistics. Kloepfel 4PL has numerous experienced 4PL experts at its disposal who have played a key role in. A 4PL or fourth-party logistics provider also referred to as a lead logistics provider (LLP) is a solution for an enterprise that wants to outsource its logistics management and execution across the supply chain. Request PDF | On Apr 1, 2016, J. Fourth-party logistics (4PL) A fourth-party logistics provider is further involved in logistics management. Example: Third-party logistics (3PL) takes all the logistic activities of company A to shift to multiple locations. For example, a 3PL company can store your inventory, pack it and ship it when required on your behalf. 4PL providers apply strategies to meet customer demand and help a business grow. The same local farm can hire a 2PL provider to transport their milk from their farm to the grocery store. The growth of the e-commerce industry in India has enabled startups. Transportation cost analysis. For example, Red. Furthermore, 3PL vendor selection is a complex. 5PL service providers typically don’t own any physical assets but use. Second Party Logistics or 2PL. 2PL: Second-Party Logistics Provider. 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. Logistics service providers typically range from in-house, first-party LSPs to complex fifth-party LSPs. A 4PL company has. a third-party logistics provider that has achieved ISO 9000 certification. The main company outsources the shipping work to this 3PL agency and they do it for a fee. Logistics Parties. Fourth party logistics or 4PL. It also integrates data across suppliers and provides visibility on inventory, transportation and performance. g. Has its own freight and warehousing possibilities. Consequently, a 4PL takes over the entire operation and allows you time to grow and expand your business. 4PL acts as a supply chain integrator. 4. As a result, enterprises. Below is a list of leading 4PL providers from across the world: Company : DHL Supply Chain. A 4PL isn’t just a 3PL with something extra stuck on top. Fourth-party logistics (4PL) is a type of logistics that focuses on the movement of goods between companies. In our farm-to-grocery store example, a 3PL may be. Logistics is a key element for businesses. It has become a multi-layer service from first party to fifth party logistics. This could for example see a greater use of ‘Physical Internet’ (or ‘PI’) solutions, based on a move towards more standardised shipment sizes,. Third-party logistics companies offer many of the same services as order fulfillment. As a fourth party logistics provider integrates the capacities of third party logistics providers, 3PL vendor selection is an important problem. ft. Also Read: What is 4PL or 4th Party Logistics. As a 4PL partner, Allyn works as an extension of your company, driving your logistics strategy and business best practices. However, air cargo transportation is rapidly expanding, with international intra-EU and extra-EU transport in Greece growing by 10. The fourth party logistic role demands intense involvement from the service supplier in the client’s business activities. A 3PL does order fulfillment, including warehousing, picking and packing orders, shipping packages, and fleet management strategies. 4PLs may contract with freight companies, 3PLs, and other service providers on behalf of clients. Fourth Party Logistics (4PL) Companies use a fourth party or 4PL logistics to outsource their logistics operations to a single partner. 4PL - is it worth it? The advantages and disadvantages of this solution are partly covered by those outlined in the description of 3PLs. J. Using 4PL allows companies to focus on customers' needs. Published: 10 Apr 2019. 3PL company) works more closely with your business than freight forwarders. 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. The main property of 4PL has no assets ( Mehmann, 2015 ). 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 - Fourth-Party Logistics In a 4PL model, an enterprise outsources management of logistics activities as well as the execution across the supply chain. Has physical logistics possibilities. Just for the sake of being thorough, let’s have a look at what a 4PL and 5PL offer as well. Manag. Fourth-party logistics companies can effectively coordinate the activities of third-party logistics providers. For example, in 2017 a temporary worker was injured when they stood on the forklift. 4pl can effectively coordinate the activities of 3pl. HE fourth party logistics (4PL) was introduced by Ac-centure in 1998, which is described as an integrator. The 4PL is the main person that the customer speaks with. What is a 3PL? How Third-Party Logistics Providers Benefit eCommerce Brands. On the plus side, a 4PL provider. Definition Fourth-party logistics (4PLs) are often known as lead logistics providers (LLPs). Seyed-Alireza Seyed-Alagheband, in Logistics Operations and Management, 2011. Abstract. We Are Your Storage & Logistics Solution. In these various supply chain processes, 5PL uses both third-party. Second-party logistics (2PL) providers are asset-based carriers that are responsible for the method of transportation, such as ocean shipping lines, airlines, or trucking companies. Fourth-party logistics (4PL) providers, also called lead logistics providers (LLPs) are a type of logistics company that takes on some of the same roles as third-party logistics (3PL) providers while also having more accountability and responsibility in the process.