Name: Del Rosario, Sophia Ashley F.

Assignment #1
Section: BSBA-HRM 2-2N Submitted to: Prof. Reynaldo Barrera

Describe briefly the parties in the following types of Party Logistics: 1PL, 2PL, 3PL, 4PL, 5PL.

1 PL (1st Party-Logistics)
• The company handles its own transportation and logistics in 1PL. This indicates that
the business handles every facet of its internal distribution and supply chain.
Example: A local bakery handles all logistics in-house, from baking to packaging to
delivery.

2 PL (2nd Party-Logistics)
• Here, there are two parties involved. The owner of the goods contracts with a
specialized service provider to handle parts of its logistics needs, such as
transportation or warehousing. The overall logistics plan is still overseen by the
owner.
Example: A delivery service and an online clothes retailer collaborate to deliver packages
to clients.

3 PL (3rd Party-Logistics)
• This gets more complex, with three parties in the mix. The owner of the goods hires
a 3PL provider to manage a wider range of logistics tasks, including transportation,
warehousing, order fulfillment, and even customs clearance. The 3PL takes on more
responsibility and often provides technology and expertise to optimize the supply
chain.
Example: A 3PL provider is hired by a toy manufacturer to handle order fulfillment,
shipping, and warehousing.

4 PL (4th Party-Logistics)
• We have four important parties here. A 4PL provider is brought in by the goods'
owner to serve as an impartial integrator or consultant. The 4PL chooses and
manages the best 2PL or 3PL suppliers for each task, designs and implements the
best logistics strategies, and evaluates the entire supply chain. Like quarterbacks
of logistics, they call the plays and maximize the outcome of the entire contest.
Example: A multinational food company coordinates the activities of several 3PL
providers for transportation, warehousing, and customs clearance while using a 4PL
provider to manage its global supply chain.

5 PL (5th Party-Logistics)
• Complete outsourcing and cooperation are the main goals of 5PL, not only with
logistics providers but also with other stakeholders like financial institutions,
government agencies, and technology firms. Beyond simply transporting goods,
the objective is to build an ecosystem for the supply chain that is fully integrated
and optimized. This PL type is the newest and least defined.