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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 ...