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What is 4PL in logistics?
Fourth-party logistics, also known as 4PL, is an operational model in which a business outsources its entire supply chain management and logistics to one external service provider. The fourth-party logistics provider (4PL) works closely with the organization's staff and acts as a single point of contact for all logistical operations. This arrangement enables an organization to reduce its internal resources dedicated to managing the supply chain while at the same time improving the speed, quality, financial stability and flexibility of those operations. The 4PL services often include vendor selection and management, order processing, warehousing, inventory control, shipping coordination of products or services from multiple suppliers to multiple customer sites within a specified timeframe. It also covers shipment tracking & tracing as well as analytics that enable efficient process improvements.
What are the three types of logistics?
There are three main types of logistics - inbound logistics, outbound logistics, and reverse logistics. Inbound logistics involves the management of all materials entering a company from its suppliers or vendors. Outbound logistics involves managing the movement, storage, and delivery of products to customers or end-consumers. Reverse logistics is concerned with product returns and exchanges from customers, retailers, manufacturers etc.
What are the types of freight shipping?
The two main types of freight shipping are truckload and less than truckload (LTL). Truckload involves transporting commodities in a full trailer, while LTL involves consolidation of multiple customers' goods within one trailer. Other modes of freight shipping include intermodal (transportation via multiple modes such as ship, rail and/or truck) and air freight.