Logistics operators 1PL, 2PL, 3PL, 4PL and 5PL have developed even further in recent years, all thanks to advances in technology and international logistics practices. Currently we are witnesses of how in the logistics sector the various operators seek efficiency in the movement of goods and the correct management of the supply chain through various technologies.
For many companies it is sometimes difficult to identify their own needs and even know what type of tasks can be outsourced to a logistics operator, so on this occasion we present some key factors for choosing a type of operator.
1PL: (First Party Logistics) This type of operator focuses mainly on the direct transportation and storage of goods. It is designed to satisfy the needs of companies of moderate scope, mainly local movements with limited use of logistics technologies and software
2PL: (Second Party Logistics) At this level, outsourcing already has more influence on the transportation and storage of the contracting company, however it still only operates at a national level, so it is designed for medium-sized companies that seek control only of storage and distribution
3PL: (Third Party Logistics) For this type of operator, the processes that are controlled go further since not only activities such as fleet management or storage are carried out, but they also provide a detailed order preparation, cross-docking or inventory management system. It is mainly focused on companies whose scope and level of complexity demand specialized solutions.
4PL: (Fourth Party Logistics): Having reached this level of support, operators are capable of including or implementing new technologies, focused consulting, planning, structuring and total supervision of the correct functioning of the supply chain. Sometimes this type of operator is exclusively responsible for the design, construction and execution of the logistics strategy. Therefore, the approach is aimed at companies with considerable volumes, limited transfer times and the need to implement the highest technologies.
5PL: (Fifth Party Logistics): This type of operator executes strategies and management at a global level, one of its main advantages is that due to the large volume it handles, costs and environmental impact can be reduced. Therefore, its main focus is to serve international companies that delegate all storage, distribution activities and any transportation needs they may have; They use all existing technologies as well as the most advanced practices in the industry to cover absolutely every need that arises.
Sometimes it is difficult for a company to clearly define its needs and at the same time define the type of supplier it requires, which is why we have designed a unique strategy that analyzes various factors and offers the best solution for each sector and we have also put at your disposal the team of specialists who can provide you with free advice by click on the following link.