What is the difference between 3PL and 4PL?

   Release date: 31/08/2022     Hits: 3789    Comment: 0    
Note: 3PL Logistics4PL LogisticsIn a 3PL model,an enterprise maintains management oversight but outsources operations of trans
3PL Logistics4PL 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.


 
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