Given the global needs of most companies, 4PLs is more attractive from an organizational perspective.
By Adrienne Selko3
Nov. 26, 2007
Editor’s Note: I spent a few minutes with Rick Jordon, director of ICG Commerce’s Global Logistics Solutions Group, talking about trends in logistics.
Q: I’m seeing 4PL mentioned more lately and wonder if it’s the future in logistics.
A: Let me start by differentiating 3PL from 4PL. Third party logistics is the management of logistic services beyond transportation. This might include storage, shipment and value added services as well as the use of subcontractors. Fourth Party Logistics (4PL) is the integration of all companies involved along the supply chain. 4PL is the planning, steering and controlling of all logistic procedures, i.e. the flow of information, material and capital by one service provider with long-term strategic objectives.