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.
« Back to Glossary Index4PL Logistics
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.
