Main differences - 1PL, 2PL, 3PL AND 4PL logistics solutions

Main differences of types of logistics solutions

Logistics solutions, broadly speaking, are given by companies that perform multiple activities to manage the supply chain of a certain business, either partially or totally. They are those solutions related to the processes of storage, transfer, distribution, and delivery services of all types of products.

In turn, logistics operators fulfill the main role of sending and receiving merchandise or cargo, handling inventories, carrying out processes, and executing logistics in reverse We strive to provide logistics solutions that cater to our customers’ requirements. 

At this point, many are going to ask themselves: what is the most suitable type of logistics operator for my company? To know the answer, you must analyze and understand the most notable characteristics of various logistics operators available.

1PL

It's a first-hand provider. It is ideal for businesses that must send loads of merchandise exclusively from one point to another.

● Many times, they are carried out by the manufacturing company, which is in charge of its logistics, without hiring a third party.

● This service is used by medium or small companies that must strengthen their distribution chain.

● They are agencies that distribute goods locally, use their transportation, and manage the drivers’ work.



This particular service involves a mere two parties. In the beginning, the merchandise distributor intervenes; in the second, the customer receives the product. A clear example is the Coca-Cola company, which produces its drinks in a certain place and then transports them to its distribution stores.

2PL

A logistics solution that involves outsourcing logistics is centered on coordinating and executing transport and storage activities. It encompasses tasks such as managing carriers, planning routes, overseeing inventory in warehouses, and other tasks related to the supply chain. Unlike 1PL, this option is responsible for providing a much broader and more complete service.

● Operates on multiple levels, even though it runs a standard service. In other words, the contracting company will coordinate the transport fleet and prepare the orders directly to the client.

An easy example to understand is shipping companies or FedEx, for example.

3PL

Third-party logistics solutions are the materialization, in itself, of operational logistics outsourcing. This operant type is an intermediary connecting the manufacturer and the final recipient.

● Provides a shipping, transportation, and storage or safeguarding service for the merchandise within its own or contracted facilities

● It has a reception, packaging, packing, and shipping service for all types of merchandise. They may also include value-added services, such as shipment tracking.

● Offers a more personalized service that adapts to the client's needs.

Compared to the other two types of executors, this logistics operator manages to use its own storage assets and transfer equipment. It should be noted that it frees the contracting company from the entire distribution chain process. They act as strategic partners and take responsibility for executing and optimizing their clients' operations. An example of this type of logistic operator would be LOOPER.

4PL

They provide consulting services, planning, execution, location, and control of all logistics operations, including the management of transportation, storage, distribution, location, monitoring, information technology, and other aspects involved in the supply distribution chain. Compared to a 3PL, you should remember that they do not carry out the physical task of transporting and storing your merchandise by themselves but instead focus on coordinating and managing other specialized providers.

● Provides impartial service advice.

● It has project management, supply, and also negotiation of products.



An example would be the company Accenture.

Choose what's right for you

When choosing your strategic logistics ally, evaluate your needs, scope, experience, specialization, costs, and profitability. LOOPER is your trusted freight forwarder with a comprehensive logistics system with over ten years in the market. We stand out for our ability to manage and execute various logistics activities, including transportation, maneuvering, storage, and cargo distribution projects. Come with us; we adapt to your specific needs.