What is a logistics service provider?
Logistics service providers are companies that provide logistics services for other companies. In earlier times, logistics service providers mainly provided a transport function, but nowadays they also offer additional services such as warehousing, order picking and packaging. Logistics service providers can, for example, focus on specific goods such as food, furniture or building materials, or specialize in specific types of freight such as general cargo, letters, pallets or containers. In addition, the focus can be placed on specific industries such as steel, automotive or chemicals.
What are typical tasks for logistics service providers?
- Incoming goods logistics
- Order acceptance
- Payment and financing management
According to which performance classes can logistics service providers be classified?
- 1PL - First Party Logistics Service Provider: These are mainly classic carriers.
- 2PL - Second Party Logistics Service Provider: These are mainly classic forwarders.
- 3PL - Third Party Logistics Service Provider: These are system-integrated operating logistics service providers that offer customized logistics solutions for their customers. They have an independent infrastructure.
- 4PL - Fourth Party Logistics Service Provider: These are service providers that handle a company's logistics operations without necessarily contributing their own tangible assets to the process and select the appropriate services from a large number of third-party providers.
- LLP - Lead Logistics Provider: This is a service provider that maintains a global network and, if necessary, purchases the most effective solution on the market, bundled with its own capabilities. The LLP has evolved from the 4PL provider, as the latter generally does not purchase its own transport and storage capacity, but only operational logistics services.