3PL/4PL distinction

A 3PL (Third-Party Logistics) provider handles specific logistics functions like transportation, warehousing, or distribution on behalf of a company, acting as an external partner to manage certain supply chain tasks. A 4PL (Fourth-Party Logistics) provider offers a higher level of service, managing and overseeing the entire supply chain by coordinating multiple 3PLs and other logistics services. Essentially, 3PLs focus on individual logistics activities, while 4PLs serve as integrated supply chain management consultants, providing strategic oversight and comprehensive coordination for the entire logistics process.