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Terminology Explained – 4PL vs. 3PL

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Have you ever wondered what separates a 4PL (Fourth Party Logistics) from a 3PL (Third Party Logistics) company?  It generally comes down to their control within the supply chain.

4PLs have a broader role and while they assume many of the same roles as 3PLs, they have much greater responsibility and accountability in assisting clients to reach their strategic goals.

A 4PL typically directs every moving part within the client’s supply chain and serves as a single point of contact for all parties and activities, including warehousing and distribution.  In contrast, a 3PL has less accountability and control over the client’s supply chain.

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Quick Tip #18
Develop a Request for Quotation (RFQ) form to simplify the process of securing freight rates

By standardizing the process when securing freight rates, you can control the quality of work and make the review of the rates easier.

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