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Third Party and Fourth Party Logistics Providers: by Ravendra Rao K SOM Manipal University

This document discusses third party logistics (3PL) providers and fourth party logistics (4PL) providers. 3PL providers perform logistics activities like transportation, warehousing, IT, and other services. 4PL providers take a higher level role by assembling resources from their own organization and others to design, build, and manage comprehensive supply chain solutions. There is some confusion around the definition of 4PL as either outsourcing by 3PL providers or managing an entire supply chain process.

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60 views

Third Party and Fourth Party Logistics Providers: by Ravendra Rao K SOM Manipal University

This document discusses third party logistics (3PL) providers and fourth party logistics (4PL) providers. 3PL providers perform logistics activities like transportation, warehousing, IT, and other services. 4PL providers take a higher level role by assembling resources from their own organization and others to design, build, and manage comprehensive supply chain solutions. There is some confusion around the definition of 4PL as either outsourcing by 3PL providers or managing an entire supply chain process.

Uploaded by

raveendramanipal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Third Party and Fourth Party

Logistics providers
By
Ravendra Rao K
SOM
Manipal University

SDM KRR August 2016


Third party Logistics (3PL)
A Third Party Logistics (3PL) providers perform one or more of the logistics activities
relating to the flow of product, information, and funds that could be performed by
the firm itself.
Typical 3PL functions
• Transportation
• Warehousing
• IT
• Reverse Logistics (Recycling, used asset disposition, customer returns,
returnable container management)
• Brokering
• Freight forwarding
• Purchase order management
• Order taking
• Loss and damage claims
• Custom Brokering
• Port services
• Hazardous material handling
• Temperature controlled transporting
• Food grade transport
SDM KRR August 2016
Fourth-Party Logistics(4PL) Provider
According to Anderson Consulting (now Accenture), “4PL is
defined as an integrator that assembles the resources,
capabilities, and technology of its own organisation and
other organisation to design, build and run comprehensive
supply chain solutions”.
Where as 3PL targets a function, 4PL targets management
of entire process.
Confusion in the usage of term 4PL
Some define as outsourcing by 3PL, but some define as
managers of entire supply chain (Logistics, IT, designing
Supply Chain)
Multi Level Marketing?
SDM KRR August 2016

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