5PL Defined
Within a 3PL model, an organization asserts management supervision but outsources operations of transport and logistics to a supplier who might subcontract out some or all of the implementation. To add value to the supply chain, additional services may be done, such as packaging, boxing, and crating.
Within a 4PL model, an organization outsources the management of logistics activities as well as the implementation throughout the entire supply chain providing the customer with a higher level of services regarding their entire supply chain processes.
Within a 5PL model, an organization combines the proven methods of 3PL and 4PL on a global scale. It’s a 360-degree integrated relationship that supports the entire supply chain network, management aspects of the business, and financing and capital-raising activities.