4PL, or Fourth Party Logistics, is a term used to describe a supply chain management provider that acts as an intermediary between a company and its various third-party logistics providers. 4PLs are typically independent companies that provide integrated logistics services such as procurement, inventory management, warehousing, transportation, and distribution. They are responsible for coordinating the various activities of third-party logistics providers to ensure that the entire supply chain is running smoothly and efficiently. The official business definition of 4PL in supply chain management is a single entity that coordinates and manages the resources, capabilities, and technology of its own organization with those of its customers, suppliers, and other service providers to deliver integrated supply chain solutions. 4PLs provide a single point of contact for all supply chain activities, enabling companies to streamline their operations and improve their bottom line.
