from 1pl-5pl: breaking down the types of logistics providers
Offering 3pl logistics and superior 4pl logistics freight management for over 15 years, the team at elite logistics Australia are well versed in the range of logistics services available to assist businesses with elements of their supply chain including distribution, reverse logistics and warehouse storage.
While many recognise the term 3pl logistics or third party logistics, there are also other logistics management services to explore such as 1pl, 2pl, 4pl and 5pl that may be better suited for your business. Before outsourcing the freight of your products and reverse logistics to the experts in logistics and warehousing, exploring the different types of logistics will allow you to better tailor a seamless transport and storage solution for your business.
1pl: first party logistics provider
The simplest of the logistics systems, first party logistics involves only two parties with the manufacturer or distributor shipping the goods directly to the retailer or customer. This means that there are no additional businesses involved in the shipment of goods to the end destination and is best suited for smaller businesses and manufacturers.
However, once the need for freight and storage of goods increases and requires additional processing time for the employees of your business, it may be best to employ the help of trusted professionals and logistics specialists to manage the freight process.
2pl: second party logistics provider
Second party logistics involves an additional business offering the transportation of the goods from the supplier to the end destination such as the customer or retail outlet. These carrier businesses can use any kind of transportation, such as rail, road, sea or air, but they simply specialise in the movement of goods from one destination to another. As an example, it could be an airline that transports air freight internationally.
3pl: third party logistics provider
There is a range of services that fall under 3pl and a great 3pl provider will offer a blend of these services to maximise your business’ freight and storage. This can include warehousing, inventory management, pick and pack services, logistics software, and returns management while also offering a trusted in-house fleet of trucks. A major benefit of 3pl providers is the ability to also scale these services to expand business capabilities during busier periods, rather than needlessly buying assets for a business that are only needed seasonally.
As expert 3pl specialists, our team is the perfect guide to 3pl services. elite logistics Australia offer packages that blend our range of trusted couriers and scalable 3pl warehousing solutions with our integrable digital solutions that offer real-time freight updates and data.
4pl: fourth party logistics provider
Fourth party logistics differ from third party logistics as these providers manage the entire supply chain and tailor a logistics strategy for your business. The focus of a 4pl company is to optimise the entire logistics service, rather than improve one component.
As an adviser and overseer, 4pl providers measure the current key performance indicators of the logistics team, including any 3pl providers, and provide any recommendations to improve the efficiency of the logistics of the business. By offering project management of the entire logistics service, the 4pl provider acts as a single point of contact for the business regarding all logistics strategies and analytics for an additional level of communication and efficiency. An example of a 4pl logistics service provider is our logistics solutions team here at elite logistics australia
5pl: fifth party logistics provider
A new addition to the logistics industry, a 5pl provider manages a supply chain network comprised of multiple supply chains with appropriate technologies across the whole supply chain network and no limit to the number of suppliers involved.
A 5pl business manages multiple 3pl and 4pl services for its clients to create this intricate supply network, all supported by the latest information technology systems and e-commerce tools. This logistics service is best suited to large retailers that need a comprehensive service across multiple locations with multiple outsourced providers.
complete end-to-end logistics solutions
At elite logistics Australia, we specialise in providing 3pl and 4pl logistics packages for all your freight management needs and logistics goals. From 3PL warehousing to retail transport solutions, 4pl freight management we provide end-to-end logistics services across Australia, with a state-of-the-art 3pl warehouse in Victoria. Backed with the latest supply chain technology, a dedicated team, streamlined pick and pack procedures and an in-house freight fleet, our services are second to none.