L A L A L A L A L A L A L A

L A L A L L A L A A LA LA
M A M A M A M A M A M A M A
T O T O T O TO TO T O T O
A KO 1PL A K O - 2PL A K O - 3PL
A KO - 4PL
A K O - 5PL
A K O
A KO
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L A L A L A L A L A L A L A
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What are Party Logistics Models?A L A L A L A L A L A
Why companies need Party Logistics providers
L A
M A M A M A M A M A M A M A
T O T O T O
Party Logistics (PL) models are frameworks that describe the involvement of different

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Companies need Party Logistics providers to streamline their operations.

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parties in managing the flow of goods from the manufacturer to the end consumer.

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R A R A R A R A R A It

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allows them to focus on their core competencies while leveraging the expertise and

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These models range from 1PL to 5PL, each representing a different level of service complexity

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infrastructure of specialized logistics firms.

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and outsourcing. @OnesphoreRkt

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1 PL
O T O M A L A L
The
A
company

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A
handles

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L A L A
all aspects

T O M A L
of
A L A
shipping

logistics internally, without relying on external assistance.

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and

M A L A L A

O TO M A L A L A

O T O M A L A L A

OT O M A L AL A

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First-Party Logistics Manufacturer Market

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2
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On PL On On On On On On
The company partners with a specialized transportation

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provider to handle shipping.

L A L A L A L A L A L A
Second-Party Logistics
L A L A L A L A Manufacturer

L A Transportation

L A
Market

L A
M A M A M A M A M A M A M A
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3 O T O T OT OT O T O T OT
A K A K A K A K A K A K A K
R R R R R R R
The company delegates logistics functions to specialized

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providers who manage inventory, storage, and ensure

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timely delivery.
Third-Party Logistics

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Manufacturer Packaging Warehousing Transportation Market

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A A A A A A A
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A L AL
A L A L A L A L A L A L A L
PL TO M The company

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outsources the

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entire supply

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chain

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management to a provider.

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Fo rth-Party Logistics Manufacturer Logistics Company Packaging Warehousing Transportation Market

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O 5PL O O - - O O O O
A A A A A A A
Providers deliver integrated, end to end supply chain

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solutions using technology and data analytics.

Fifth-Party Logistics

M A M A M A M A M
Manufacturer
A Logistics Company

M A Packaging

M A
Warehousing Transportation Market

T O T O T O TO TO T O T O
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R A R A
Advantages
R A R A R A R A R A
Limitations

Complete
o re Control: o re o re o re re
Lack of Expertise:
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The company

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makes all decisions

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and can tailor operations

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to its

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The company may not always possess the best logistics practices,

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esCost Savings: B nes e s e s 1 e s e s e s
preferences. leading to potential inefficiencies.

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logistics in
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company can save n
OResource Requirement:O
money on
PL
n O n Managing logistics internally necessitates investment in

L A L A L A L A L A L A L A
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outsourcing. resources such as money, technology, and personnel.

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M M M M M M M
Shipping Expertise: TO T O T O TOLimited Services: TO T O T O
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The specialized provider only handles transportation, leaving other logistics

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The partner possesses expertise in efficient shipping methods.

Flexibility: 'RA R Aj R Aq R R A R A R A
aspects untouched.
PL

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It s easy for the company to ad ust its shipping needs as re

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uired.
Dependency:re
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The company relies on the provider for shipping, which can pose risks if issues arise.

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O Comprehensive Services: O 3 O OS OReduced Control: O q O
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PL companies offer a range of services, simplifying CM. Companies relin uish some control over logistics operations.

Expertise and Cost Savings: L A

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AConflicts: G 3 LA
L A L AL
L L L L L
PL
- Potential
A A A A A A A
They are skilled in cost saving measures and efficient operations. oals of the PL may not always align with those of the company.

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A Management: 4 RA K A K A K K
Ahips: 3A
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Comprehensive
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PLs oversee the entire supply chain, ensuring cohesion.
R Complex Relations
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Managing multiple PLs and partners re uires careful attention.

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h Decision-Making: They hfacilitate optimal decision-making
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Informed Cost Consider
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PL services may come at a higher cost, depending on customization.

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Cutting-Edge Technology: L A L A L A L A L A L A L A
L A L A
They leverage advanced tech for efficient operations.

L A L A
Learning Curve:
L A L A L A
Companies need time to adapt to new technologies and methodologies.

Quick Decision-Making: D A- A A 5 Cost AFactor: H - A A A

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ata

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driven decisions enable rapid problem

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solving and process PL
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igh

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tech
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expensive, making them more suitable for

improvement.

O T O T OT OT O T larger companies.

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A K A K A K A K A K A K A K
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