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3 PL & 4 PL Services

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Service Overview

If you've ever been hunting for logistics providers, you may have come across different terms like 3PL, 4PL, or 5PL. And you might be wondering, what do these terms stand for and what do they mean?

Logistics is a detailed network built for the delivery and shipment of goods. Be it an online store or a field cleaning service, logistics is there to get the right product (or service) to the right customer. The logistics process supports the entire supply chain and ensures that all aspects of eCommerce order fulfillment are covered.

Every day, online store owners and retailers rely on order fulfillment providers and 3PL (third-party logistics) solutions. As a business owner, it's easy to get confused while browsing through different logistics services like 3PL or 4PL, not to mention 5PL.

3PL meaning and definition

3PL = third-party logistics. 3PL services cover warehousing, packaging, and shipment (from routing to Proof of Delivery) of the goods. Businesses outsource logistics management to 3PL companies whenever first-party logistics aka self-delivery is not an option due to limited resources.

3PL services have grown tremendously since 1990. This is due to the fact that 3PLs provide solutions to supply chain management, including warehouse solutions, transportation, and fulfillment for any business struggling with first-party logistics.

A company can hire 3PL providers to save time and avoid the unwanted hassle. In short, 3PL/third-party logistics companies can manage the whole e-commerce fulfillment process and assist the company with many aspects of the supply chain.

4PL meaning and definition

4PL = fourth-party logistics. It is the most advanced form of logistics for supply chain management. With 4PL, the optimization of the entire logistics process is the main focus. Both 3PL and 4PL used to perform the same duties, the difference between 3PL and 4PL is that the latter is non-asset-based. It means that 4PLs do not have owned storage or transportation facilities to offer.

Instead, 4PLs act like consultants in the entire supply chain management process. 4PL offers access to 3PLs and other companies, including freight forwarders, to provide support for the relevant aspects of the supply chain logistics. Put simply, 4PLs are all about the management of outsourced supply chains.

Another difference between the 3PL and 4PL model is that 4PLs are a pretty new concept in the logistics industry. These days, 4PLs are lead logistics providers because they are in charge of management on the highest level of logistics.

4PLs offer more efficient and competent ways to manage supply chains. Above all, if you're looking for a single invoice solution, a 4PL service provider is the best choice.

Frequently Asked Question

  • What is 3PL and 4PL services?
    A 3PL (third-party logistics) provider manages all aspects of fulfillment, from warehousing to shipping. A 4PL (fourth-party logistics) provider manages a 3PL on behalf of the customer and other aspects of the supply chain.
  • What is the difference between 3rd and 4th PL?
    A 3PL provider focuses on the day-to-day operations of your supply chain logistics while a 4PL focuses on optimizing your entire supply chain. Consequently, a 4PL takes over the entire operation and allows you time to grow and expand your business.
  • Is 4PL better than 3PL?
    CONTROL & INVOLVEMENT: If you want to maintain more control and direct involvement in your supply chain management, a 3PL partner may be a better choice. On the other hand, if you prefer to delegate logistics operations to an outside expert, a 4PL partner may be more suitable.
  • Do you ship anywhere in the world?
    Yes, we have an extensive network of carriers worldwide helping you send your products to any part of the world.
  • How do I book a shipment?
    We have a hassle-free booking system. All you have to do is Contact Us or visit any of our offices, and we will guide you through the entire booking process.
  • Can I track my shipment anytime?
    Yes, we provide real-time updates about your shipment, enabling you to track it easily.
  • How much would your services cost?
    We offer a range of cost-efficient services to transport your goods. The exact pricing depends on several factors such as the weight, type and destination of your shipment.
  • How can I cancel my booking? Is there any cancellation fee?
    You can cancel your booking anytime by contacting us. However, you will be charged a cancellation fee based on the status of your booking and our terms and conditions.
  • Why should I choose Rudder Logistics India Pvt. Ltd.
    We come with over 5+ years of experience in logistics and freight forwarding. Moreover, with an expert, you can save money and time while transporting goods.