Sunday, October 18, 2015

1 to 10 PL

Logistics outsourcing involves a relationship between a company and an LSP (logistic service provider), which, compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, is characterized by a long-term orientation, and thus has a strategic nature.
Outsourcing does not have to be complete externalization to a LSP, but can also be partial:

Third-party logistics

Third-party logistics (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself. According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in house. For example, if a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries.

Fourth-party logistics

The concept of a fourth-party logistics (4PL) provider was first defined by Andersen Consulting (now Accenture) as an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider targets a single function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer.


5pl
A third-party logistics provider (abbreviated 3PL) is a firm that provides outsourced or 'third party' logistics services to companies for part or sometimes all of their supply chain management function. Fourth party logistics is an integrator that assembles the resources, capabilities, and technology of its own organisation and other organisations to design, build and run comprehensive supply chain solutions. Since the advent of the 4PL service, the international logistics industry has been researching on the development of the fifth-party logistics service i.e. the realisation of full-scale operation of e-procurement. A key function of the 5PL is to aggregate the demands of the 3PL into a bulky volume for negotiating more favourable rates with airlines and shipping companies regardless of which generation of logistics solution belongs to all.

http://www.5pl-uk.com/
http://www.amosoft.com/news/2013/07/3pl--4pl--5pl--6pl-definitions.asp

Evolution
http://avsathe.com/pdf/PPT%20-%20%204%20PL%205PL.pdf

10 PL 


  • 1PL – Shipper
  • 2PL – Traditional Transportation Provider
  • 3PL – Integrated Logistics Service Provider
  • 4PL – High Level Logistics/IT Consulting
  • 5PL – Consulting for the High Level Logistics/IT Consultants
  • 6PL – Artificial Intelligence Driven Supply Chain Management
  • 7PL – Autonomous Competitor Created to Test Alternative Supply Chain Strategies
  • 8PL – Super Committee Created to Analyze Competitor’s Results
  • 9PL – Crowd Sourced Managed Logistics Strategy
  • 10PL – Supply Chain Becomes Self Aware and Runs Itself


  • http://www.dedola.com/10pl/frequently-asked-questions-10pl/
    http://www.youtube.com/user/DGL10PL?feature=watch 

    14 comments:

    Unknown said...

    Thanks, this helped a lot. 1PL, 2PL, 3PL, and 4PL are all necessary depending on the business type and size.

    Unknown said...

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    Unknown said...

    Can I get more explanation about 6PL to 10PL.. It is news for me.

    Tripathlogistics said...

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    Jayakumar said...

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    Indelox Services said...

    Third party logistics & fourth party logistics is very popular nowadays, just because of hassle free goods services.

    Nice post, Keep it up.

    With best regards
    3 PL Third Party Logistics

    Unknown said...

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    Anonymous said...

    Your blog is so informative. logistics strategy has often been undertaken either as a qualitative overview, considering facility location, facility size and mode of transport.

    Tripathlogistics said...

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    Jayem said...

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