Warehousing & Supply Chain
3PL vs 4PL: What Is the Difference?
4 min read
As businesses outsource logistics, the terms 3PL and 4PL come up often. They describe different levels of how much of your supply chain a partner manages.
Third-party logistics (3PL)
A 3PL provider executes logistics services such as warehousing, transport, fulfilment and freight forwarding on your behalf. You outsource the operations while keeping overall control of the supply chain.
Fourth-party logistics (4PL)
A 4PL provider manages the whole supply chain at a strategic level, coordinating multiple 3PLs and other partners. It acts as a single point of control, focusing on design, integration and oversight rather than running assets directly.