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What is the difference between fourth party and third party logistics?

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Question added by rashid kupaza
Date Posted: 2016/11/15
Jamal Elghandour
by Jamal Elghandour , Regional Operations Manager & Business Development Manager , Mandara Holding

!) 4 PL organization is often a separate entity established as a joint venture or long-term contract between a primary client and one or more partners

2) 4 PL organization acts as a single interface between the client and multiple logistics service providers

3) All aspects (ideally) of the client’s supply chain are managed by the 4 PL organization

Mohd Arifuddin
by Mohd Arifuddin , Lead Consultant , Binzagr CO

Third-party logistics providers are:

  • Freight forwarders
  • Courier companies
  • Other companies integrating & offering subcontracted logistics and transportation services

The CSCMP defines 4PL as follows:

Differs from third party logistics in the following ways; 1)4PL organization is often a separate entity established as a joint venture or long-term contract between a primary client and one or more partners; 2)4PL organization acts as a single interface between the client and multiple logistics service providers; 3) All aspects (ideally) of the client’s supply chain are managed by the 4PL organization; and, 4) It is possible for a major third-party logistics provider to form a 4PL organization within its existing structure.

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