In the world of supply chain management, 4^th party logistics (4PL) is a term that comes up often, but what does it actually mean for your company? How is it different from 3^rd party logistics? It’s time to answer these questions and more as we take a closer look at 4^th party logistics.

While 3^rd party logistics has roots in the industry tracing as far back as the 1970s, 4^th party logistics has really only entered the conversation over the past 20 years. The term was first registered in 1996, by a company called Accenture, and was defined as "a supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization with those of a complementary service provider to deliver a comprehensive supply chain solution." While the trademark on the term has since expired and is no longer registered, 4PL services as defined by Accenture are still being offered today to help many companies around the world bridge the gap between asset ownership and logistics expertise.

So what exactly is 4PL and how does it differ from 3PL? Read more to find out.

Every year supply chain management becomes more complex due to changing regulations, technology and a variety of other factors. This complexity has made it more difficult for mid-tier and large-sized companies to oversee every element of their supply chain from beginning to end. That is why, since the 1970s, we have seen more and more companies rely increasingly on 3^rd party logistics (3PL) providers to manage and support their supply chain.

What has changed since the 1970s? What is 3PL? Why is it critical to a supply chain? Keep reading and we will explore all these questions and more.