7/18/22, 9:24 AM Functions of Third Party Services | Free Online Course | Alison

Module 8: Layers of Logistics and Value-Added Services



CSCMP Defination of 3PL and 4PL

CSCMP defines 3PL as follows: CSCMP defines 4PL as follows:

Differs from third party logistics in the following ways:

- 4PL organization is often a separate entity established as a joint venture or long-term contract between a
primary client and one or more partners
- 4PL organization acts as a single interface between the client and multiple logistics service providers
- All aspects (ideally) of the client’s supply chain are managed by the 4PL organization
- It is possible for a major third-party logistics provider to form a 4PL organization within its existing
structure

4PL was originally defined by Accenture as "A supply chain integrator that assembles and manages the
resources, capabilities, and technology of its own organization with those of complementary service
providers to deliver a comprehensive supply chain solution”.

4PLs have also been referred to as "Lead Logistics Providers". Now a new crop of companies have
emerged who are actual transportation companies too. While a 4PL is sometimes described as non-asset-
owning service provider, their role is to provide broader scope managing the entire supply chain.

4PL is neutral and will manage the logistics process, regardless of what carriers, forwarders, or
warehouses are used. The 4PL can and will even manage 3PLs that the customer is already currently
using. Many 4PLs have addressed the huge requirements of electronic interface between numerous

Previous
companies.

Next




Reminders Resources Support

https://alison.com/topic/learn/105634/third-party-services 1/1