1PL, 2PL, 3PL… HOW TO CHOSE ITS LOGISTICS PARTNER ?

The different players

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1PL – « First Party Logistics » : THE CUSTOMER

A company that ships its products from one place to another is a 1PL. For example, a local farmer who transports his vegetables directly to an early trader is a 1PL.

2PL – « Second Party Logistics » : THE FLOWS

A company that has a fleet of vehicles to transport products from one place to another is a 2PL. This same local farmer could hire a 2PL provider to transport his vegetables to the premises of the early trader.

3PL – «  Third Party Logistics » : THE PHYSICAL MANAGEMENT OF THE FLOWS

If a company maintains management oversight, but outsources transportation and logistics activities, then it uses a 3PL supplier. This is the case with XP LOG, a 3PL service provider, logistics and transport service provider.

4PL – « Fourth Party Logistics » : ADVICE AND POJECT MANAGEMENT OF THE WHOLE FLOWS

In a 4PL model, a company outsources the management of logistics activities as well as execution throughout the supply chain. The 4PL provider typically offers a broader view and management of the company's supply chain, bringing together transit and logistics and transportation.

5PL – « Fifth Party Logistics »

A 5PL supplier provides innovative logistics solutions. It seeks to gain in productivity and increase their value from the beginning to the end of the supply chain by using developed technologies: EDI, robotics, automation ...

XP LOG 3PL provider – what you need to know

•  Transport
• Storage
• Cross-docking
• Inventory management
• Packaging
• Freight forwarding