1PL: 1st Party Logistics
The 1st party logistics to referred to a firm or individual, that has their own cargo, freight and can transport goods and merchandise from one point to another point. They are the specifically the consigner of different goods and products and organizes the transport of products to their respective destinations. It mainly consists of two parties that get benefit from the transaction. The manufacturer or the supplier and the person buying it. There are no other middlemen involved in the whole process.
2PL: Second Party Logistics
A 2nd party logistics involves transport of goods from a particular transport area of the supply chain like rail, road, sea or air. They are the asset-based carriers and includes like transport using ships of own lease and airlines that they are contracted with. They are mainly used for international transportation of heavy and wholesale goods and for trading purpose as well.
3PL: 3rd Party Logistics
A 3rd party logistics is a supply chain that primarily concerns the transportation and delivery of different products but also includes various types of additional services as well. The functions of 3PL include warehousing, terminal operations, customs brokerage, supply chain management and many more. It also includes logistics IT software products and analysis services, for tracking and tracing the delivery status of different products. These 3rd party logistics delivers all the above-mentioned services and also manages various obstacles that come in the way. They specialize in domestic and offshore warehousing and also takes care of your other supply chain management systems.
4PL: 4th Party Logistics
A 4th party logistics is a new concept which is coming into the market, and it involves employing an overseer for managing an entire supply chain of a company. These logistics are often called Lead Logistics provider and they are often treated as a consulting company for many supply chains. They act as a head administrator and takes care of every aspect of these supply chain companies.
They are frequently contracted with many 3rd party logistics and for maintaining neutral management and for providing feedback regarding various 3pl logistics services. With increased efficiency 4pl is becoming the next big thing in the logistics sector. They provide a single invoice solution and streamlines logistic work like no other.