Fourth Party Logistics Definition

A fourth party logistics provider (4PL) is a company that provides a comprehensive outsourced logistics solution for its clients. The 4PL arranges and manages all aspects of the supply chain, from suppliers to manufacturing to distribution and delivery.

The term “fourth party logistics” was coined in the late 1990s by Accenture, a management consulting firm. At that time, the concept of 4PL was relatively new and there was no agreed-upon definition for it. However, the general idea behind 4PL is that it goes beyond traditional third-party logistics (3PL) services. Whereas a 3PL simply provides transportation and warehousing services, a 4PL takes on a much more strategic role in managing the entire supply chain.

Today, there is still no universally accepted definition of 4PL. However, most experts agree that a 4PL must provide comprehensive solutions that go beyond simple transportation and warehousing. In addition, a 4PL must be able to integrate seamlessly with its clients’ systems and operations.