A 4PL is an abbreviation for lead logistics and is a logistics company that helps to arrange and manage the entirety of a supply chain. Whether this may be transporting goods from the warehouse to delivering the product ot your customers. But how does 4PL differ from a 3PL like Global Warehouse Solutions?
Differences To A 3PL vs. 4PL
A 3PL is a third-party logistics service. They’re used by organizations to outsource elements of its distribution, warehouse management, and any fulfillment services that the company has. With a 4PL, it adds a bit more separation between the merchant and the 3PL. Instead, it manages the relationship with the 3PL directly so that the merchant doesn’t have to.
Supply Chain Optimization
With 3PL, the merchant can work with them directly to find ways to optimize fulfillment, where the 4PL does not.
As 4PL is the merchant’s main point of contact suppliers, all communication will be filtered through to them to handle. This may cause delays, which isn’t something you’d necessarily get when working with the 3PL directly.
3PL focuses on order fulfillment, so that comes down to tasks like picking and packing orders, etc. For a 4PL, they take a step further by managing everything in the supply chain from transportation to technology.
Choose Global Warehouse Solutions
So which one is best for you? 3PL is one that’s most commonly used and great for those experiencing rapid growth. With 4PL, they act as consultants or head of logistics to help outsource all the supply chain tasks. Using Global Warehouse Solutions is great if you’re looking for third-party logistic services.
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