Differences between 3PL and 4PL
We realized increasingly within supply chain industry the use of different level of PL terminology as part of their supply chain operation. And recently we keep hearing 3PL and 4PL terminologies more and more. Before we look into what may differentiate 4PL from 3PL we need to understand the PL terminology. 1PL would be the owner of the cargo, this could be the consignee or the shipper and they within the organization control the distribution type, origin and destination. 2PL involves the carriers to provide transportation services for the cargo owners supply chain operation. 2PL companies could be the carriers, trucking and rail companies. The use of 3PL started around 1970s and before that the communications were only between the shippers and the carriers. With the intermodal companies getting into the picture and became part of shipper’s operation by accepting shipments from the shippers and offering them to the rail carriers they started to c...