This is a post from LogisticsList.com defining what 1st Party, 2nd Party, 3rd Party(3PL) and 4th Party (4PL) logistics really means…we thought this was helpful information and to let you know that Say Cargo Express is an experienced 3PL Service Provider!
1st Party: The Supplier
2nd Party: The Company buying the product that is being stored or shipped
3rd Party Logistics Provider (3PL): The company that provides warehousing and transportation outsourcing.
4th Party Logistics Provider (4PL): The majority of people would agree that 4PL is little more than logistics consultant speak, but nevertheless here is the official definition courtesy of Accenture:
“A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions.”
The latest jargon that is now gaining adoption is that of the Logistics Service Provider and Lead Logistics Provider…A Logistics Service Provider (LSP) is really what most people would see as a traditional 3PL provider offering a combination of warehousing and transportation services or one or the other. As global and multi national providers enter the game, things have certainly changed, but the Logistics Service Provider at its core is fundamentally the same. A Lead Logistics Provider (LLP) is the new term that consultants now more frequently use instead of 4PL. At the most basic level a Lead Logistics Provider is nothing more than a Non-Asset Based 3PL, but there is certainly an emerging field of logistics providers that oversee and manage a portfolio of warehousing and transportation providers from a higher level. At the end of the day you can call 3PL providers whatever you want but its still about storing and shipping things.