Differences between 1PL, 2PL, 3PL, 4PL, 5PL Logistics

Logistics is an organization involves movement of goods to customer. It’s a part of supply chain management system that plans, implements and control forward and reverse flow of goods and services to meet customer’s requirements.

1. 1PL logistics:

First party logistic provider is a company or an individual who doesn’t outsource transport and logistic activities to third person and every function regarding these are handled by their departments in their companies. Any person who moves their goods and services from their place to new place it is called as 1pl provider. He may be trader, manufacturer, importer, exporter, retailer or distributor. 

2. 2PL logistics:

Second Party logistic provider owns means of transportation. They have their own trucks, ships, airlines and also provide their services for lease too.

3. 3PL logistics:

The manufacturer outsources his transport and logistic activities to 3pl logistic providers. They are responsible for Transport, Warehousing, Packing, Inventory management, Freight forwarding activities, till it reaches to receiver. They may have their own services or hire third parties. He acts as a bridge between manufacturer and receiver in supply chain activity.

4. 4PL logistics:

Fourth-party logistics provider is manages entire functions in supply chain like procurement, storage, Distribution, Processes where as 3pl concentrate only on single function.

  5. 5PL Logistics:

Fifth party logistics provider will work on demands on 3PL logistics and they also help others for negotiating favorable rates with airlines and shipping companies in order to have more savings.

Jayem logistics is top logistic service provider and best warehousing company in India. It is expert in executing 2PL, 3PL, 5PL services in supply chain management. It has separate group companies to execute operations individually. Jayem warehousing contains 64 ware houses across 32 cities in India having 2.0 Million sq ft Warehouse space. Jayem Inland Transport is providing services on demand / contractual transportation services to large enterprises, SMEs, traders and distributors. Jayem Trade provides the service of 5 PL to small and medium Enterprises abroad and managing all their logistics as well as payments for the value of the goods. It is a huge LOGISTICS SERVICE PROVIDER with 9 Separate group companies to develop expertise and quick response to customer.