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How it works out for each of Logistics parties :1PL to 4PL

by Werawat on 01/12/2017 03:39:18
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How it works for each of Logistics parties :1PL to 4PL 

The meaning and player of 1PL, 2PL, 3PL and 4PL. It's also VITAL to know the players as you are in Logistics industry.


1PL (First Party Logistics)

Cargo owners

Concern beneficial cargo owners which can be the shipper or the consignee. They dictates the origin and destination of cargo with distribution being an entirely internal process assumed by the firm. With globalisation and the related outsourcing and offshoring of manufacturing, distribution services that used to be assumed internally tend be contracted to external service providers.


2PL (Second Party Logistics)

Carriers

Concern the carriers that are providing a transport service over a specific segment of a transport chain. It could involve a maritime shipping company, a rail operator or trucking company that are hire to haul cargo from an origin to a destination.


3PL (Third Party Logistics)

Agents/Forwarders

Outsourcing all of a company's logistics operations to a specialised company. Contracts for transportation had featured only two parties, the shipper and the carrier. Preferably, these services are integrated or "bundled", together by the provider. Service they provide are transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding.


4PL (Fourth Party Logistics)

Total Logistics Service Provider

is an independent, singularly accountable, non-asset based integrator who will assemble the resources, capabilities and technology of its own organisation  and together organisations, including 3PLs, to design, build and run comprehensive supply chain solutions for clients.


Posted by Giztix on Sep 3rd, 2016
Source: cerasis.com

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