5PL Logistics

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.