1PL or First Party Logistics
It is an individual or company that transports merchandise from point A to point B. They can be self-sustaining companies or transportation companies contracted to distribute the merchandise of a company, taking care of the maintenance of the transport, the management of routes and the contracting of drivers, while the company that hires them runs its own operations.
2PL or Second Party Logistics
They are companies that, in addition to transporting the merchandise, offer storage services for the products. Internally, the contracting company coordinates the preparation of orders in the warehouse.
3PL or Third Party Logistics
They are external logistics providers that specialize in operation, storage and transportation. This level is more integrated as it manages the different phases of the process, addressing the organization of transport operations and warehouse management. These operators are more personalized and adapted to the needs of their clients.
A manufacturing company can carry out its own logistics or it can outsource it, it can hire one or more external companies to handle its logistics and they can focus on its core business.
4PL or Fourth Party Logistics
Also known as Lead Logistics Provider or LLP. 4PL logistics operators oversee logistics functions; They do not have physical resources but they do have the experience and technological capacity to optimize the efficiency of the supply chain to the maximum.
5PL or Fifth Party Logistics
Also known as Logistics Operator or LO. They are characterized by the operational integration in the execution of 3PL services and the optimization of the 4PL supply chain, so it includes the optimization and execution of all logistics operations.
How to choose the right supplier?
- That they have experience in the sector where your company operates.
- That it is a company backed by its clients is a way to ensure the quality of its processes and services.
- They must have the ability to customize services according to the needs of your company.
- Their experience and certifications are also important when choosing your logistics provider.
At Dasza we are ready to help you and you can gladly contact us to learn more about us and make your quote. See you in the next article!