Logistics service provider

What is a logistics service provider?

Logistics service providers are companies that provide logistics services for other companies. In the past, logistics service providers mainly provided a transportation function, but nowadays they also offer additional services such as storage, order picking and packaging. Logistics service providers can, for example, focus on certain 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 sectors such as the steel, automotive or chemical industries.

What are typical tasks for logistics service providers?

  • Incoming goods logistics
  • Warehousing
  • Order acceptance
  • Invoicing
  • Order picking
  • Shipping
  • Payment and financing management
  • Returns
  • Waste disposal

According to which performance classes can logistics service providers be classified?

  • 1PL - First Party Logistics Service Provider: These are mainly traditional carriers.
  • 2PL - Second Party Logistics Service Provider: These are mainly traditional freight forwarders.
  • 3PL - Third Party Logistics Service Provider: These are system-integrated logistics service providers that offer customized logistics solutions for their customers. They have their own infrastructure.
  • 4PL - Fourth Party Logistics Service Provider: These are service providers who handle a company's logistics processes without necessarily contributing their own tangible assets and who 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 required, purchases the most effective solution on the market, which is bundled with its own capabilities. The LLP has emerged from the 4PL provider, as the latter generally does not purchase its own transport and storage capacities, but only operational logistics services.



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What is a logistics service provider?


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