3PL vs 4PL Logistics: The Layers of Logistics Explained

Hello & welcome back to another Talking Freight brought to you by Cerasis, the transportation management company.

Learning the difference between a third-party logistics (3PL) and fourth party logistics (4PL) as well as 1PL and 2PL, and the rise of even Fifth Party Logistics (5PLs) is both confusing and highly debated among those in the supply chain industry.

So Let’s talk about and explain all of the layers of logistics.

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[alexfranciscoflores]

Excellent explanation, the real challenge is to differentiate a 3PL vs 4PL. The 4PL´s are still a gray area where only few want to be.

[inviscidconsulting]

Nicely done, Adam and Cerasis. Thanks for helping to educate the masses on the nuances of the parties in the logistics ecosystem!

[vivekmenon]

Thank you so much .. this is very helpful

[RadioHelm]

perfectly explained. Thanks for the video :)

[reubenrodrigues]

3:01 - definition of 4pl, 3:10 - Where it came from. it's also called as LLP.

[sigmacolsupplychainsolutions]

There is no sense in dividing LP's in other categories other than 3PL and 4PL. Segmentation of services and technologies used and provided doesn't have to lead to the classification of n LP's.

[suddude]

Super, please describe 5PL in more detail

[dubistgutguy]

What's the difference between 4PL and consulting company that provide logistics solution service?

[mohibkhan]

anyone tell me Why companies should go 4pl instead of 3pl?

[footnanny]

I believe a 4PL Distributor is even more needed. So a 4PL-D. They would buy the goods at a distributor price and pay the business net 30 for the goods since they want to control all of the E business. They should be able to bring the heat and have the 5PL as the holding company that provides the cash flow. Just saying.

[localmarketingwiz]

Thanks for the info. Just talk a bit slower next time please, it is a lot to take in the first time

[yasashii]

This was frustrating to watch. He took over 7 minutes to explain something that could have easily been explained in under a minute.