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3PL, 4PL AND 5PL

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on 4 March 2014

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Transcript of 3PL, 4PL AND 5PL

fourth party logistics 4(PL)
Arrangement in which a firm contracts out its logistical operations to two or more specialist firms to coordinate the activities of the third parties.
example
types of 4PL
Third Party Logistics (3PL)
Introductory video:
Types of 3PL providers
-Standard 3PL Provider

-Service Developer

-The Customer Adapter

-The Customer Developer

overview

1. Third Party Logistics (3PL)
-Introductory video
-Definition
-Example
-Advantages and disadvantages

2. Fourth Party Logistics (4PL)
-Definition
-Example
-Types
-Advantages and disadvantages

5. Fifth Party Logistics (5PL)
- definition
-advantages and disadvantages
3PL, 4PL AND 5PL
Definition
Third Party Logistics, which is a practice of supply chain, where one or more logistics processes of a firm are outsourced to an external provider.

Advantages and disadvantages
advantages:
•Partner of the supply chain. (A member of a law firm or an accounting firm formed as a partnership)
• High knowledge of client business.
• Commitment to financial results.
• Capacity for innovation.
• High technology investment covering the entire chain.
• Little use of own assets.
Julián Felipe Camacho
María Andrea Puentes

disadvantages:
-Sufficient facilities and space 

-Fulfill the requirements and goals 

-Technology

-Firm´s position

-Communication (buyers and suppliers)

-Loss of control

advantages
Control over outsourcing operations activities.
disadvantages
- High costs

- Communication bewteen the service providers

fifth party logistic (5PL)
A fifth party logistic service provider guarantees the management of networks of supply chains. A fifth party logistic service provider develops and implements, preferably in close consultation with the client, the best possible supply chains or networks. Fifth party logistic is often linked to E-business.
advantages
Large companies with highly complex supply chain
disadvantages
- Loss of control and relationships with supply chain

- members, risk in long term partnerships
References
-http://www.businessdictionary.com/definition/fourth-party-logistics-4PL.html

- http://www.articlesbase.com/outsourcing-articles/advantages-and-disadvantages-of-third-party-logistics-4366445.html

-http://www.ey.com/CO/es/Home

-http://www.ship.gr/4pl/ex.htm
Full transcript