NAME: Iqbal

ID : 349-2018

SUBJECT: PURCHASING IN SUPPLY CHAIN MANAGEMENT

ASSIGNMENT NO # 1

1PL:

1st Party Logistics

The first party logistics to refer to a firm or individual, that has their own cargo, freight and can
transport goods and merchandise from one point to another point.

They are the specifically the consigner of different goods and products and organizes the
transport of products to their respective destinations.

EXAMPLE:

Deer stationary send their stock to their Distribution unit.

2PL: Second Party Logistics

A 2nd party logistics involves transport of goods from a particular transport area of the supply
chain like rail, road, sea or air. They are the asset-based carriers and includes like transport using
ships of own lease and airlines that they are contracted with. They are mainly used for
international transportation of heavy and wholesale goods and for trading purpose as well.

Example:

Deer stationary send their stock to their Distribution unit. Then deliver goods small distribution
units

3PL: 3rd Party Logistics

A 3rd party logistics is a supply chain that primarily concerns the transportation and delivery of
different products but also includes various types of additional services as well. The functions of
3PL include warehousing, terminal operations, customs brokerage, supply chain management
and many more. It also includes logistics

Example:

Deer stationary send their stock to their Distribution unit. Then deliver goods small distribution
units its deliver goods to their local inside city wholesale dealers.

4PL: 4th Party Logistics

Among the 1PL 2PL 3Pl 4PL and 5PL, the 4th party logistics is a new concept which is coming
into the market, and it involves employing an overseer for managing an entire supply chain of a
company. These logistics are often called Lead Logistics provider and they are often treated as a
consulting company for many supply chains. They act as a head administrator and takes care of
every aspect of these supply chain companies.

They are frequently contracted with many 3rd party logistics and for maintaining neutral
management and for providing feedback regarding various 3pl logistics services. With increased
efficiency 4pl is becoming the next big thing in the logistics sector. They provide a single
invoice solution and streamlines logistic work like no other.

Example:
Deer stationary send their stock to their Distribution unit. Then deliver goods small distribution
units which deliver goods to their contractors through 5 Star Logistic.

5PL: 5th Party Logistics

A fifth party logistics provider is also known as a logistics aggregator. They will aggregate the
demands of the 3PL and others into bulk volume for getting better rates with different types of
airlines and shipping companies. This type of logistics is not asset based. It usually works
seamlessly across all disciplines.

Example:

Deer stationary send their stock to their Distribution unit. Then deliver goods small distribution
unit which deliver goods outside countries use multiple overseas shipping companies to deliver
their textile goods in other countries.