Fourth Party Logistics (4PL)

Differs from third party logistics in the following ways:
  1. 4PL organization is often a separate entity established as a joint venture or long-term contract between a primary client and one or more partners;
  2. 4PL organization acts as a single interface between the client and multiple logistics service providers;
  3. All aspects (ideally) of the client's supply chain are managed by the 4PL organization;
  4. It is possible for a major third party logistics provider to form a 4PL organization within its existing structure (Strategic Supply Chain Alignment; John Gattorna) .