| 3PL Logistics | 4PL Logistics |
|---|
| In a 3PL model, an enterprise maintains management oversight but outsources operations of transportation and logistics to a provider who may subcontract out some or all of the execution. | In a 4PL model, an enterprise outsources management of logistics activities as well as the execution across the supply chain. |
| Additional services may be performed such as crating, boxing and packaging to add value to the supply chain. | The 4PL provider typically offers more strategic insight and management over the enterprise's supply chain. A manufacturer will use a 4PL to essentially outsource its entire logistics operations. |
| In a farm-to-grocery store example, a 3PL may be responsible for packing the eggs in cartons in addition to moving the eggs from the farm to the grocery store. | In a farm-to-grocery store example, the 4PL may manage the communication with the farmer to produce more eggs as the grocery store's inventory decreases. |
