{"id":578,"date":"2019-01-16T10:11:59","date_gmt":"2019-01-16T10:11:59","guid":{"rendered":"https:\/\/ithinklogistics.com\/blog\/?p=578"},"modified":"2021-12-21T16:17:29","modified_gmt":"2021-12-21T10:47:29","slug":"types-of-logistics-its-difference","status":"publish","type":"post","link":"https:\/\/www.ithinklogistics.com\/blog\/types-of-logistics-its-difference\/","title":{"rendered":"Types of Logistics & Its Difference"},"content":{"rendered":"\n

Known as a massive chain network, logistics is a detailed organization responsible for carrying out various delivery and shipment related operations. Whenever you buy a product from an online store these logistics are the ones, that takes care of your shipment and makes sure you get the right product in your hand. The rise of e-commerce<\/a> has made a significant contribution in a world economy and so did these logistics. Without logistics, a concept of e-commerce could have never been possible to be implemented. This blog explains different types of logistics available like 1PL 2PL 3PL 4PL 5PL and how they are unique in their own way.<\/p>\n\n\n\n

1PL: 1st Party Logistics<\/h2>\n\n\n\n

The 1st party logistics to referred to a firm or\nindividual, that has their own cargo, freight and can transport goods and\nmerchandise from one point to another point. They are the specifically the\nconsigner of different goods and products and organizes the transport of\nproducts to their respective destinations. It mainly consists of two parties\nthat get benefit from the transaction. The manufacturer or the supplier and the\nperson buying it. There are no other middlemen involved in the whole process.<\/p>\n\n\n\n

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2PL: Second Party Logistics \n<\/h2>\n\n\n\n

A 2nd party logistics involves transport of goods from a particular transport area of the supply chain like rail, road, sea or air. They are the asset-based carriers and includes like transport using ships of own lease and airlines that they are contracted with. They are mainly used for international transportation of heavy and wholesale goods and for trading purpose as well.<\/p>\n\n\n\n

3PL: 3rd Party Logistics<\/h2>\n\n\n\n

A 3rd party logistics is a supply chain that\nprimarily concerns the transportation and delivery of different products but\nalso includes various types of additional services as well. The functions of\n3PL include warehousing, terminal operations, customs brokerage, supply chain\nmanagement and many more. It also includes logistics IT software products and\nanalysis services, for tracking and tracing the delivery status of different products.\nThese 3rd party logistics delivers all the above-mentioned services and also\nmanages various obstacles that come in the way. They specialize in domestic and\noffshore warehousing and also takes care of your other supply chain management\nsystems.<\/p>\n\n\n\n

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4PL: 4th Party Logistics <\/h2>\n\n\n\n

Among the 1PL 2PL 3Pl 4PL and 5PL, the 4th party logistics is a new concept which is coming into the market, and it involves employing an overseer for managing an entire supply chain of a company. These logistics are often called Lead Logistics provider and they are often treated as a consulting company for many supply chains. They act as a head administrator and takes care of every aspect of these supply chain companies.<\/p>\n\n\n\n

They are frequently contracted with many 3rd\nparty logistics and for maintaining neutral management and for providing\nfeedback regarding various 3pl logistics services. With increased efficiency\n4pl is becoming the next big thing in the logistics sector. They provide a\nsingle invoice solution and streamlines logistic work like no other.<\/p>\n\n\n\n

5PL: 5th Party Logistics <\/strong><\/h2>\n\n\n\n

A fifth party logistics provider is also known as a logistics aggregator. They will aggregate the demands of the 3PL and others into bulk volume for getting better rates with different types of airlines and shipping companies. This type of logistics is not asset based. It usually works seamlessly across all disciplines. <\/p>\n\n\n\n

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Advantages of 3rd Party Logistics<\/h2>\n\n\n\n

Out of 1PL 2PL 3PL 4PL 5PL, the 3rd Party Logistics is the most convenient and well known logistic service in India. They provide more than just shipping and delivery, and some of the major points are listed down below.<\/p>\n\n\n\n

It is Cost Effective<\/strong><\/h3>\n\n\n\n

3pl has been ruling the logistics sector for quite a time now, and it has been seen that people who make contracts with third-party firms always saves money on an overall basis. Not only that, but these logistics also meet the technical requirements of the clients. Their expertise is extremely superior that deals with delivery and product shipment on a much affordable cost and totally maintain the time boundary. These logistics not only reduce product return requests but also helps in reducing inventory costs as well.<\/p>\n\n\n\n

There is an extremely low capital commitment<\/h3>\n\n\n\n

These logistics doesn’t make you trade a fortune\nwhile you come on the deal with them. If a company wants to outsource their\nlogistics to a third party firm, then they don\u2019t need to worry about\nmaintaining and managing an inventory. This not only saves money but also\nreduces capital commitment. These 3pls have their own management and transport\nsystems which reduces the overall maintenance cost. Not only these logistics\ntake care of warehousing, transportation, but also takes care of other\noperations more efficiently and with more knowledge than the client himself.\nAll these services come under an extremely viable price and allow you to sit\nand relax while they take care of everything for you.<\/p>\n\n\n\n

You can focus on other important work<\/h3>\n\n\n\n

Giving your logistics responsibility to a 3rd\nparty reduces a great amount of a headache. There is no hassle and chaos of\ntaking care of every step necessary for delivering a product. You focus on\nother important works while this 3rd party does everything for you.<\/p>\n\n\n\n

iThink Logistics:<\/strong> The best 3rd Party Logistics in Town<\/h2>\n\n\n\n

The iThink Logistics is a 3rd party logistics in India <\/a>which came into function back in 2017. The unique concept of this logistics made it the best and the most efficient logistic firm in India. They not only take care of the products also makes sure that everything gets managed the right way. Using the AI-driven technology, the company has its own virtual calling software that confirms on the product descriptions before shipment. Other than this, they also have an NDR team<\/a> which takes care of the non-delivery of the product. In case of any mishaps this company contacts with the seller, the delivery boy and the buyer to remove all conflicts and delivers the right product at your doorstep.<\/p>\n\n\n\n

India is growing and the future of logistics is predicted to be extremely bright. These different logistic services are not only bridging the gap between seller and customer but are also proving that the world is really small and all it takes is a little management to connect people all across the world.<\/p>\n\n\n\n

Conclusion<\/h2>\n\n\n\n

How many of the services have you used? Which one was better? Do let us know in the comment section below.<\/p>\n\n\n\n

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Known as a massive chain network, logistics is a detailed organization responsible for carrying out various delivery and shipment related operations. Whenever you buy a product from an online store these logistics are the ones, that takes care of your shipment and makes sure you get the right product in your hand. The rise of […]<\/p>\n","protected":false},"author":1,"featured_media":1119,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154],"tags":[],"ppma_author":[942],"class_list":["post-578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce-logistics"],"authors":[{"term_id":942,"user_id":1,"is_guest":0,"slug":"itl","display_name":"iThink Logistics","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/b4af7cac7d295164a2d224597716ce3e33d8ed46f1b378d9829b78f319277e0f?s=96&d=blank&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"amp_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/posts\/578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/comments?post=578"}],"version-history":[{"count":32,"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/posts\/578\/revisions"}],"predecessor-version":[{"id":5706,"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/posts\/578\/revisions\/5706"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/media\/1119"}],"wp:attachment":[{"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/media?parent=578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/categories?post=578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/tags?post=578"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.ithinklogistics.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}