What are 4PLs?

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What are 4PLs?

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A 4PL is a supply chain services provider that assumes managerial responsibility for the design, build, run, measurement and orchestration of an end-to-end logistics network on behalf of their customer for a fee. A 4PL manages and coordinates the physical execution of logistics operations via internal and/or external parties while delivering end-to-end visibility, management control and optimization via an integrated technology platform.
The growth in demand for 4PL partnerships is largely a result of the impact and ongoing risk that various disruptions pose to logistics networks and global supply chains. This increased focus on risk management has driven organizations to elevate the importance of integrating logistics into their supply chains on organizational, process and digital levels. Gone are the days when logistics was considered a poor relative of the supply chain family; on the contrary, logistics has come of age and has finally earned a well-deserved seat at the supply chain table.
The 4PL’s scope of managerial services spans the logistics needs of their customer. This means that the 4PL typically oversees internal company resources, 3PL providers, and carriers allowing their client to deal with one service provider as the central orchestrator. Typically, the transactional contractual agreements with the carriers and 3PLs in this scenario remain direct with the customer, and the 4PL is compensated via a management fee structure.
Some 4PLs are leveraging digitally enabled technology capabilities to help them orchestrate process integration between logistics and other supply chain functions. These enhancements can enable advanced capabilities in supply chain planning, sourcing and procurement, manufacturing, network design, and strategic planning.

4PLs (Fourth-Party Logistics) Reviews and Ratings

What are 4PLs?

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