Fourth Party Logistics (4PL)
Differs from third party logistics in the following ways:
- 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;
- 4PL organization acts as a single interface between the client and multiple logistics service providers;
- All aspects (ideally) of the client's supply chain are managed by the 4PL organization;
- 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) .
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