Fourth-party logistics (4PL) is when a business outsources the management of its whole supply chain to one provider, which coordinates carriers, 3PLs, suppliers and technology on its behalf. A 4PL provider acts as a single point of accountability. It plans, manages and optimises the end-to-end supply chain rather than running individual operations such as warehousing or transport. 3PL vs 4PL: A 3PL provider carries out specific services, such as storing goods or moving them from A to B. A 4PL provider manages the wider supply chain, including the 3PLs and carriers involved, and uses data and technology to improve cost, visibility and performance across it. Why it matters for your supply chain: A 4PL model gives you one view of your whole supply chain and one partner to manage. This makes it easier to spot issues early, control costs and adapt when markets change. Related terms: Third-party logistics (3PL), Supply chain management (SCM), Freight forwarder Find out more: Supply chain management
