4PL Logistics

Fourth party logistics [4PL] providers; consultants who provide agnostic advice to clients about the optimum design of their supply and demand chains. 4PL providers diagnose the supply chain needs of their clients, and design solutions based around the integration of the capability and technology of a variety of potential providers. The difference between 3PL and 4PL is 3PL service providers can own assets and operate supply chain solutions, while 4PL providers are agnostic about what is the optimum solution and provide independent advice with operating the final solution. For example, company E recommends to company B that it outsources its logistics to a 3PL. With assistance from company E, company B selects company F to be its 3PL. In this example, company E is the 4PL provider. See also 1PL Logistics, 2PL Logistics, 3PL Logistics and 5PL Logistics.