A Third Party Logistics company (3PL) provides outsourced or ‘third party’ logistics services to companies with supply chain needs. These services may encompass some or all the supply chains including but not limited to storage, distribution, customs brokerage, domestic and international freight forwarding and logistics software solutions. A 3PL often has a strong focus on technology solutions and integrations.
A Fourth-Party Logistics company (4PL) utilizes its own capabilities along with the services and technology of other companies, including 3PLs, to create comprehensive supply chain management solutions for their customers. 4PLs are similar to 3PLs, but typically are responsible for the entirety of their customer’s supply chain.
Because of the broad scope of services that the a 3PL or 4PL may render their risk profiles can vary and may encompass many different operational roles in the supply chain.
