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7/18/22, 9:25 AM Functions of Third Party Services | Free Online Course | Alison

Module 8: Layers of Logistics and Value-Added Services


Functions of 3PLs and 4PLs

Third-party logistics providers usually Functions provided by a 4PL company:


specialize in:

- Procurement
- Storage
- Distribution
- Processes

A 4PL company takes over the logistics section of a business. This could be the entire process or a side
business that’s imperative to have as part of the main business. An example here would be a bicycle
importer. The main function is to import bicycles however, they need to have spare parts for these unique
bikes. A 4PL would manage the total logistic operations for the spare parts business.


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