We probably all have heard of 3PL’s and 4PL’s in the logistics industry, but what on earth is a 10PL?
In the world of modern logistics we probably all have heard of 3PL’s and 4PL’s. A 3PL (abbreviation for Third Party Logistics Provider) is a firm that provides service to its customers of outsourced logistics services for part, or all of their supply chain management functions. 3PL’s typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers’ needs based on market conditions. Whereas a 3PL service provider targets a single function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer.
Now some logistics providers have further increased their services and are calling themselves 10PL’s. Here is pyramid chart of the services and functions offered by a 10PL: