2023-11-13 |

What does 4PL stand for?

Read this blog post to find out what the term 4PL stands for and what distinguishes a 4PL from a 3PL. We have summarised for you what our business model as a 4PL is all about and why this might be of interest to you as an importer.

What does the acronym 4PL stand for?

The acronym 4PL stands for “4th Party Logistics” and describes the relationship between the parties to a goods transaction.

For example, if the manufacturer of a product is the first party, its buyer is the second party. If only these two parties are involved in the transaction, either the supplier will deliver the goods or the buyer will collect them. If both parties do not have their own transport capacities, they commission a third party, a so-called freight forwarder or 3PL. This party then takes over the transport of the goods for a fee.

In the case of transport from or to overseas, the supply chain usually consists of the services of numerous individual parties which are hired by a 3PL. The 3PL acts as a reseller, similar to a wholesaler. The aim of a 3PL is to maximise profits with the best possible utilisation of both its own and outsourced services and capacities.

How is a 4PL different?

4PL stands for a strategic approach to logistics and supply chain management. A 4PL company is an independent player that acts as a supply chain manager. This means that it analyses, optimises and coordinates a company’s supply chain by selecting, managing and integrating all required service providers (carriers, 3PLs, freight forwarders, warehouses, customs agents, etc.).

The advantages of the 4PL concept are:

  1. Increased efficiency leads to significant cost savings in logistics.
  2. Strategic orientation and risk management from the customer’s perspective instead of maximising own profits.
  3. Global access to services, transport and storage capacities with strong purchasing power due to grouping effects.
  4. Flexibility to react to changing market conditions and unforeseen challenges at any time.
  5. Technological integration f all parties involved in the supply chain.
  6. Cost transparency and passing on the conditions of all parties directly to the customer.

Prologue Solutions

Working with Prologue Solutions as a proven 4PL offers you not only tangible, but also measurable added value. You benefit from various factors that have a significant and lasting positive impact on your logistics processes and logistics costs, both individually and in combination.

If you would like to know more about our business model as a 4PL and why this could be of interest to you as an importer, please contact us: to our contact form

Source: 2023/11, Prologue Solutions GmbH.

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