Fifth party logistics [5PL] providers are non-asset based, service providers that integrate 3PL logistics services through technology platforms to coordinate activities, secure e-Commerce efficiencies and, aggregate the demands of 3PL providers to negotiate favourable rates with airlines and shipping companies. As an example, company A outsources its outbound logistics to company D; company B outsources its outbound logistics to company F, and company G coordinates e-Commerce efficiencies between companies D and F, enabling volume aggregation to secure the best rates on shipping terms from key 2PL providers. In this scenario, company G is the 5PL provider. See also 1PL Logistics, 2PL Logistics, 3PL Logistics and 4PL Logistics.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
