How 3PL and 4PL Logistics Companies are Different
Identifying How Logistics and Supply Chain Management Services Set Companies Apart
Outsourcing to a 3PL company or a 4PL company means two very different things—depending on who you ask!
Logistics companies are solely responsible for helping companies coordinate complex operations. More specifically, companies who sell products need assistance handling the management of shipments between point A, the warehouse, and point B, the consumer. Anyone who runs a business knows nothing is ever as easy as it sounds, however, as regulations and guidelines make handling hundreds and thousands of orders an intense project for any business or corporation in the country.
Consumers around the globe purchase all types of products, from food requiring refrigerated carriers to high grade professional equipment requiring step deck and flatbed shipping carriers. With such a large demand, there is always an ongoing list of responsibilities with every shipment revolving around proper handling of materials, production, inventory, transportation, warehouse needs, security, and the intensive transfer of all product information.
Every logistics company handles a different percentage of ALL the aspects involved with getting products from production to consumption—from producer to consumer.
For companies who want to focus their time and energy on the implementation of excellent customer service or the expansion of their brand, logistics companies are hired to handle practically every technical shipping need you don’t want to think about.
So, What Do the PL's Mean?
Identifying a logistics company’s role and relationship with your company is multifaceted and a bit fuzzy. What is the difference between 3PL and 4PL? What can you expect from a logistics company promising fourth party logistics services?
Everyone's interpretation of the difference between 3PL and 4PL (not including 5PL!) is a little bit different. Some 3PL's call themselves 4PL's and vice versa.
What's important to understand is that you should not think in terms of "do I want a 3PL or 4PL?" Rather, you should be asking what services your company needs outsourced to maximize your profits. If it's everything? Look for a 4PL. If you still want some control, you may prefer a 3PL for a more flexible source with whom to integrate logistics, supply chain, warehousing, and all management services.
Feel free to contact Direct Drive Logistics right now to find out what we can be for YOUR business.
3PL Logistics: Provider of Simple Freight and Warehousing Services
Third party logistics companies build a client base for whom they provide various outsourced transportation and warehousing services. For instance, if a company wanted to make regular deliveries of furniture orders from Milwaukee, WI to Los Angeles, CA, but didn’t want to invest in their own truck line and additional employees to oversee the new operation, they’d contact a company like Direct Drive Logistics to take care of these shipments instead.
The easiest way to define a 3PL is remember two words: Service Provider. If you have the resources to work collaboratively with a 3PL company, you will be responsible for the management of the operations, but otherwise 3PLs provide a number of logistics services, such as:
- Warehousing
- Cross Docking
- Inventory Management
- Packaging
- Freight & Transportation
How 3PL Companies Work
Essentially, 3PLs handle your shipments.
They’re responsible for receiving your products, having a place to temporarily store or hold them, and then transport them while still delivering them under your company’s name. If you know the terms, 3PLs can also be identified as courier companies or freight forwarders as well. Direct Drive Logistics is not strictly a third party logistics provider, but we do offer a number of these logistics services for our customers to help them with various deliveries.
Learn everything about 3PL companies and how they work.
Like a 3PL, we can simply provide freight and warehousing services for your company’s convenience. Our transportation services come in many different forms so you’re able to make shipments by any means, including:
3PL Transportation Services
Expedited Shipping
Hot shot freight is in no better hands than Direct Drive Logistics. For the quickest shipments via cargo van, sprinter van, flatbed, dry van or refrigerated carrier, we've got what you need. Read more
Intermodal Transportation
3PL logistics companies minimize load times and freight costs by utilizing intermodal shipping containers for cross-country cargo loads. Read more
Over the Road Trucking
Over the road trucking is the lifeblood of domestic shipping operations. Direct Drive Logistics gets you the quickest shipping for the lowest costs via flatbeds, step deck trailers, dry vans and tractor trailers. Read more
4PL Logistics: The Fully Realized Management of Entire Supply Chain Operations
As one of the most comprehensive logistic options available in modern times, fourth party logistics companies construct and execute the processes in supply chains. Essentially, 4PL companies are logistics managers and, unlike most 3PLS, a contract binds their management solutions with their client instead of just continuing to build a larger client base like a third party logistics company – which can be hard for a 3PL to balance long term.
When companies contact and create a partnership with a 4PL organization, they’re allowing them to take complete control of all their shipping needs and responsibilities.
4PLs manage entire supply chains, handling everything from freight and warehousing to the legal paperwork in-between. For companies looking to take their minds off their supply chain operations completely, fourth party logistics companies can provide a fully realized management efforts of any supply chain. Another benefit, 4PLs use their own resources to provide their services to support the supply chain of the company who hired them.
We Cater Our Services to YOUR Needs
Direct Drive Logistics offers a number of supply chain management options for companies who don’t want to worry about their logistics. Serving companies around the nation and world, Direct Drive provides logistics services for companies based in the cities all over the United States, including:
Whether you’re in search of a 3PL or 4PL company, Direct Drive Logistics offers the logistics services and supply chain management you need to have successful shipments year round. We pride ourselves on the relationship we build with our clients, establishing true partnerships with the businesses we work with. Positive, effective communication is key in having success with any logistics company, and we’re glad to provide you with the logistics services you need to find your own success.
After all, we can only achieve our goals if you do first.