1PL, 2PL, 3PL… How to chose its logistics provider ?


The different kind of service providers

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1PL – « First Party Logistics »: THE CUSTOMER

A company which ships its products from a place to an other is 1PL. For example, a local farmer which transports its crops directly to a greengrocer is 1PL.

2PL – « Second Party Logistics »: THE FLOWS SUPPLY

A company which owns transportation vehicles and transport goods from a place to an other is 2PL. The same local famer can work with a 2PL provider to transport and deliver its crops to the greengrocer.

3PL – « Third Party Logistics »: FLOWS MANAGEMENT

If a company manages the flows but subcontracts the transport and logistics activities then, the supplier is a 3PL. This is the case of XP LOG, 3PL provider of logistics and transport services.

4PL – « Fourth Party Logistics »: HANDLING OF ALL THE FLOWS

When a company subcontracts its logistics activities and its whole supply chain, it works with a 4PL provider. The 4PL supplier offers a global and broader management of the supply chain. This thanks to its freight forwarding, logistics and transport portfolio of services.

5PL – « Fifth Party Logistics » 

A 5PL supplier provides innovative logistical solutions. It always tries to be more efficient and productive. In addition, they bring an added value to the supply chain of a company by using new technologies such as EDI and automatization processes.

XP LOG, a 3PL provider – What you need to know

It’s important to notice that a 3PL provider has no right on the shipped goods. The 3PL provider has a role of an intermediary between the 2 other parties : the seller and the customer.

XP LOG has its own assets such as trucks and warehouses. In addition, XP LOG offer a range of integrated services within the supply chain such as:

  • Transport
  • Storage
  • Cross-docking
  • Inventory management
  • Packing
  • Shipping

XP LOG can adapt and tailor its services in order to answer your needs. And this in accordance with your expectations.