Some businesses deal with logistics on their own, other use providers. More and more entities are now rendering such services, and their organization may vary.
Let's understand what exactly does 1PL, 2PL... 5PL models suggest?
1PL - First-Party Logistics
A venture or small enterprise that sends goods or products from 1 location to another is referred to as 1PL. For example, a farm that transports eggs directly to shopping markets or grocery stores is a 1PL.
2PL - Second-Party Logistics
An organization or enterprise that maintains assets like vehicles or airplanes to transport products from one place to another is a 2PL. The same local farm might hire a 2PL to transport their vegetables, cereals, or eggs from the farm to the supermarket.
3PL - Third-Party Logistics
4PL - Fourth-Party Logistics
5PL - Fifth-Party Logistics
The 5th logistics service supplier can fortify demand. Additionally, it negotiates rates with other service providers, like trucks, airlines, etc.
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