bongdaso conDefinitions of 3PL, 4PL, and others in supply chain

10.12.2021

In bongdaso con logistics chain, like any industry field, there are appearances of concepts to update and keep up with practical activities which are more effective for businesses. Let’s try to learn some supply chain concepts with ALS today:

1. What is 1PL?

bongdaso con

First-party logistics (1PL) service provider is a company or person who needs to have their own goods transported from place A to place B. bongdaso con term first-party logistics provider is also used to stand for shipper and consignee. For example, a company that wants to self-manage logistics supply chain including manufacturing, importing & exporting, warehousing, distribution, etc., in bongdaso con international commerce field. Anyone having goods moved from bongdaso con amount of distance is considered to be a first-party logistics provider. bongdaso con 1PL is bongdaso con basic level of logistics chain management which was applied from old time till now.

2. What is 2PL?

bongdaso con

2PL refers more widely to transportation appearance. This level mentions particular vehicles to move goods such as rail, road, sea or air. Even though 2PL is more innovative and specialized than 1PL, it is quite simple with single operations for logistics supply chain services. 2PL only takes one stage in bongdaso con logistics chain. 2PL is bongdaso con management of traditional activities such as transportation, warehousing, customs procedures, payment, etc.

3. 3PL (Third-party logistics services )

3PL (Third-party logistics services ) is a firm or person who manages and performs logistics services on behalf of bongdaso con shipper in several stages. 3PLs are activities performed by a logistics service provider on behalf of bongdaso con customer based on annual contracts or unusual requests.

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For example, 3PL providers could carry out export procedures on behalf of bongdaso con consignor, implement customs clearance documentation, bring goods to bongdaso con specified destination, etc. 3PL may include different services, which are more linked and integrated during bongdaso con whole process.

4. 4PL (Fourth logistics service provider)

4PL (Fourth logistics service provider) is a firm that can integrate and connect diversified resources, potential and technical facilities with other organizations to design, build and operate logistics chain solutions. 4PL is bongdaso con management and implementation of complex logistics activities such as resource management, control coordination center, architecture functions and integrated logistics activities.

bongdaso con 4PL is related to bongdaso con 3PL but more developed. bongdaso con 4PL services cover more activities, including 3PL operations, information technology services, and business process management. 4PL is considered a unique contact point. bongdaso con distribution chain's administration, aggregation of all resources, and supervision of 3PL functions are performed to reach bongdaso con global market, strategic advantage. And lasting relationships.

5. bongdaso con difference between 3PL and 4PL logistics

Basic features of each level itself makes bongdaso con difference. These mentioned below could point out some certain differences between 2 concepts:

3PL4PL
Size business of customersMedium & large sized scaleSmall & Medium size scale
Main targetOptimizing and integrating to offer bongdaso con most suitable logistics solutions for customers in line with customer’s overall visionFocusing on maintaining routine operating stably
Asset ownershipAble to own some key asset and facilities such as trucks, warehouses, etcGenerally don’t typically own assets.
Coordination4PL companies can effectively coordinate bongdaso con activities of 3PL providers.
Transaction valueOften provide bongdaso con highest level of logistics services for a great value in long runOne-off transactions.
Connect pointMaintaining a single point of contact for every business’ supply chainCustomers need to manage certain aspects of bongdaso con supply process internally

ALS rises to bongdaso con challenge of understanding our customers’ needs and providing customized solutions to help you succeed. Contact ALS today via 19003133 (email: contact@als.com.vn) to learn more about our services or ask any questions.

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