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    1PL, 2PL, 3PL, 4PL, 5PL

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    UMAIR AFZAL
    1PL refers to companies that manage their own supply chain and do not outsource logistics activities like distribution and marketing. 2PL companies outsource distribution and delivery to third party logistics providers but manage other functions internally. 3PL providers handle additional logistics activities like packaging and warehousing in addition to distribution. 4PL companies manage a client's entire logistics operation and provide strategic insights and communication between clients and logistics service providers. 5PL combines elements of 3PL and 4PL and also plans solutions to meet client demands while potentially negotiating rates with shipping companies.

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    1PL, 2PL, 3PL, 4PL, 5PL

    Uploaded by

    UMAIR AFZAL
    388 views2 pages
    1PL refers to companies that manage their own supply chain and do not outsource logistics activities like distribution and marketing. 2PL companies outsource distribution and delivery to third party logistics providers but manage other functions internally. 3PL providers handle additional logistics activities like packaging and warehousing in addition to distribution. 4PL companies manage a client's entire logistics operation and provide strategic insights and communication between clients and logistics service providers. 5PL combines elements of 3PL and 4PL and also plans solutions to meet client demands while potentially negotiating rates with shipping companies.

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    1PL refers to companies that manage their own supply chain and do not outsource logistics activities like distribution and marketing. 2PL companies outsource distribution and delivery to third party logistics providers but manage other functions internally. 3PL providers handle additional logistics activities like packaging and warehousing in addition to distribution. 4PL companies manage a client's entire logistics operation and provide strategic insights and communication between clients and logistics service providers. 5PL combines elements of 3PL and 4PL and also plans solutions to meet client demands while potentially negotiating rates with shipping companies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    388 views2 pages

    1PL, 2PL, 3PL, 4PL, 5PL

    Uploaded by

    UMAIR AFZAL
    1PL refers to companies that manage their own supply chain and do not outsource logistics activities like distribution and marketing. 2PL companies outsource distribution and delivery to third party logistics providers but manage other functions internally. 3PL providers handle additional logistics activities like packaging and warehousing in addition to distribution. 4PL companies manage a client's entire logistics operation and provide strategic insights and communication between clients and logistics service providers. 5PL combines elements of 3PL and 4PL and also plans solutions to meet client demands while potentially negotiating rates with shipping companies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Assisginment – 1PL, 2PL, 3PL, 4PL, 5PL

    1PL:
    IPL or also called first party is a company who doesn’t outsource its supply chain activities and
    manages itself, it uses internal resources for marketing and distribution of its product to the
    costumers.
    Example:
    A company producing milk deliver its products from its manufacturing unit or farm directly to
    market using its own distribution and transport network.
    Tapal Tea in Pakistan manages its own distribution activities without using an outside distributor.

    2PL:
    2PL or also called 2nd party logistics is a company who uses an outside distributor for the
    distribution of its products to the market and costumers. They manufacture their products then
    hire a second party for distribution and delivery of its products to market.
    Example:
    By taking an above example of same milk producing company, they produce their milk but hire
    an outside company for the distribution of its product to the market by taking advantage of
    specialized delivery network with more systematic approach and quick availability of products in
    the market.
    Number of companies in Pakistan such as Nestle, Engro, Pepsi, Shan Foods uses outside
    distributor for the delivery of its products to the market.

    3PL:
    3PL also known as third party logistics is a term used for the company who outsource its
    additional logistics activities to an outside party which includes distribution and delivery of the
    product as well as packaging and warehousing of its products.

    Example:
    Suppose there is a fish farming company which has number of fish farms and exports its fish
    products throughout the global market, it hires a 3rd party company who provides them
    packaging services as well as warehousing, distribution, and transportation of its fish products in
    local and international market by using land, air, and sea transportation network.
    DHL and FedEx are some of the 3PL companies who provided extended logistics solutions to its
    clients that includes packaging, warehousing, and local & international transportation of the
    products.
    4PL:
    4PL or 4th party logistics is when a company outsources its management of complete logistics its
    activities, it includes all 3PL activities such as warehousing, packaging, and distribution plus few
    more activities such as procurement, strategic insight, communication channels etc. 4PL being
    the single point of contact manages all communication between the client and various logistics
    service providers. In short, 4PL is the complete logistics solution for its clients.
    Example:
    By taking an above example of fish farming company, a 4PL company will manage the
    communication activities by extending its logistics services and may advise the farm to produce
    more fishes or related products as per the requirements.

    5PL:
    5PL is a rather new concept. It combines the 3PL & 4PL methods and it further extends it with
    aggregating he demands of its clients. It also plans and implements logistics solutions, fulfil
    demands and may also negotiate rates with shipping and airlines.
    Example:
    By extending the above example of fish farming company, a 5PL may fulfil demands by the
    costumers on behalf of its client such as providing additional packing and security for the
    products, it may also negotiate rates with the shipping line in order to save transportation cost for
    client. It may further establish payment delivery option to receive payments by costumer on
    behalf of client.

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