The Four Different Inter-Related Layers of Logistics Service Providers Essential for The Success of Your Business

If you are looking into logistics service providers and planning on hiring an agency or a consultancy that specializes in supply chain solutions and logistics management, you need to be aware of the different levels of logistics services that are available in the field. While first-party logistics service providers involve only the cargo owners, third-party, and fourth-party logistics service providers offer a more comprehensive range of amenities and benefits for the company depending on the scale of the business operation. Read on to find out everything you need to know about four interrelated layers of logistics service providers that are crucial for eCommerce supply chain management.

First Party Logistics: 1PLs or first-party logistics service providers essentially deal with the shipment of the orders and their reception before delivery. The distribution process is an internal matter of the hired eCommerce supply chain and logistics management agency. 1PLs usually involve the manufacturer of the said product and the retailer who generally makes bulk orders and acts as the primary customer. It does not involve transportation or warehousing of the said goods.

Second-Party Logistics Service Providers: 2PLs cover more than just the basic source and destination. It also includes the transportation of the manufactured products from one storage space to the next until the order has been shipped and received for delivery. The transportation networks involved in an e-commerce Supply Chain could be a shipping company or a trucking service that is used for transporting the cargo from the manufacturing unit to the distribution center.

Third Part Logistics:  3rd party logistics service providers are probably the most popular of the four tiers. Not only do they have storage and warehousing facilities, but also ensure safe transportation and swift order fulfillment by optimizing the routes and coming up with the best shipping alternative supply chain solutions. 

Fourth-Party Logistics: 4Pls play an active role in supplier selection, routing, order fulfillment as well as customer services. Such supply chain solutions and consultancies basically supervise every aspect and the different stages of order fulfillment benefiting the client as well as their customers.