- Is 3PL similar to 4PL
- How different are these logistics providers?
- Which among the two is more common and why?
Learn more about 3PL and 4PL logistical systems
In a third party logistics, a provider may subcontract transport and logistics outsourced to them by the central enterprise which oversees everything. On the other hand, 4PL logistics involves an enterprise choosing to outsource management as well as the execution of logistics in the supply chain. If you are after optimizing your business’ supply chain, you may be confused about whether to 3PL or 4PL logistics provider because a wrong choice will negatively affect your services.
Differences between 3PL and 4PL
The main difference that distinguishes 3PL from 4PL is the responsibility and control a client has in their supply chain. While 3PL only handles shipments, 4PL handles the whole company’s supply chain.
A third-party logistics is responsible for performing the following tasks under your business name:
- Receiving your goods and storing them.
- Packing the assets as needed.
- Managing the products if need be.
- Finally delivering the goods.
3PL to 4PL
A 4PL similarly executes all the above tasks together with managing the whole supply chain in terms of managerial decisions and legalities. It completely controls your supply chain with its resources.
How similar is 3PL to 4PL?
Apart from the overall managerial decisions of your company, both 3pl and 4pl are involved in receiving the required goods, handling them, storage, and delivery to their final destination. They both have their fair share of the good and bad side, and getting one depends on how you want your supply chain management to function.
Whether to choose between a 3PL or 4PL logistics provider depends on your business’ needs. At what level do you want to be in control of your business and how much you can invest in the logistics are the main things that will help you choose and provider?
Most companies prefer 3pl providers since they can oversee all activities and make decisions for their business. Those who opt for 4pl may want to get rid of the burden of responsibility associated with logistics and supply chain.
Take control of your freight with an Asset-Based 3PL Logistics Trucking Company that can assure you transparency from the port to your destination nationwide, request a free quote today and discover your asset-based logistics solution.
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