Interesting Article
25 December 2023

Get to know Parties Logistics

In these days, it is undeniable that logistics is close and relevant in everyone's daily life, because from upstream to downstream consumers are all related to logistics. Whether it is a matter of ordering products online, transportation Communication and coordination or tracking of shipment status by " Parties Logistics" is part of making logistics operations more convenient. Today, I would like to introduce and get to know more about Parties Logistics.

Parties Logistics can be divided into 5 categories or 5PLs, with their roles and duties as differentiators of each type of Parties Logistics as follows.

1PL (First Party Logistics) refers to a business in which an organization is engaged in all logistics activities by itself, such as a seller or product manufacturer who collects goods and delivers goods to customers by themselves.

It is difficult for 1PL to carry out all activities from upstream to downstream customers entirely manually. This has led to the creation of a specialized transportation service provider, also known as 2PL.

2PL (Second Party Logistics) refers to the basic logistics service provider, which mainly provides only freight services with specialized expertise, such as air (aircraft), water (cargo ship), land (truck), rail or courier, etc. To transport goods from the point of origin to the destination or distribution point.

3PL (Third Party Logistics) refers to a business that acts as an agent of a logistics service provider (2PL) in providing all or part of the services of an activity, such as transportation services. 3PLs coordinate between basic logistics service providers with specialized expertise (2PLs). and take over each format. Explain transportation tasks such as shipping or freight forwarders that help take care of the transportation of goods both import and export, including taking care of documents and customs clearance, etc.

4PL (Fourth Party Logistics) refers to the business of providing a consultation service for various logistics business choices. To put it simply: Customer assistants choose their own logistics service provider (3PL) agents, providing information technology services, and consulting on logistics system development and supply chain management.

5PL (Fifth Party Logistics) refers to the e-Business Market service provider, which provides logistics service providers (3PL or 4PLs) and helps to manage the supply chain through an electronic platform or e-commerce, which will help the system to be flexible and cost-effective. This leads to an effective management strategy that can fully respond to logistics service users.