4PL VS 3PL: which one is better for you?

As an e-commerce seller, you must be familiar with a third-party logistics companies, but have you ever delved into the concept of “4PL”? What are the differences between 3PL and 4PL?

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The major service of 4PL:

  • Logistics channel optimization
  • Transportation network analysis
  • Carrier performance supervision
  • Project consulting and management
  • Inventory planning

Differences between 3PL and 4PL:

  • 1. The fourth-party logistics is usually an independent entity established by a joint venture company or other long-term contract between a customer and one or more partners.
  • 2. The fourth-party logistics organization is the transfer station between customers and other logistics service providers.
  • 3. Ideally, all aspects of the customer’s supply chain are taken over by fourth party logistics company.

In brief, 4PL can be regarded as an upgraded version of 3PL. Fourth-party logistics companies subcontract different logistics operations and coordinate and supervise them on behalf of their customers. Thus, you can choose the suitable one based on performance of your company. Generally speaking, a third-party logistics can establish a fourth-party logistics company with enough scale. Just like china division, we are available for customized packaging and seamless logistics management after owning 9000 m² effective stock area. So we can play the role of 3PL and 4PL in a better way.

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