The types of logistics operators, what are they and what is their difference? - Authorized Movers

The types of logistics operators, what are they and what is their difference?

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Today, it is the norm to hire one of the types of logistics operators. The complexity of these activities today makes extreme specialization necessary. Outsourcing at least part of your warehousing and / or distribution process is the new normal. In this note, we’ll explain how these can benefit you, depending on the degree of outsourcing you want to perform.

What are the types of logistics operators?

The logistics operators These are companies dedicated to providing their own services to the supply chain of the contracting company. When you hire a logistics company to take over part of your operations, you will be able to focus your efforts on your specific business area.

types of logistics operators

So you don’t need to invest in transportation, logistics staff, storage space, etc. In this sense, outsourcing any type of logistics operator is usually much more profitable.

Types of logistics operators

Among the different types of logistics operators, we find the 1PL, 2PL, 3PL, 4PL and 5PL. Its name comes from English: first second, etc + party logistics: responds to activity partition logic. The figures indicate the level of participation granted to suppliers in the logistics and distribution of your process. Here we will tell you more about each of them.

This name is known, not strictly speaking to the suppliers, but to the same companies who decide to take charge of their own logistics. This means that you, within your own company, store and transport your own merchandise independently. It is common in companies little, which can be autonomous in the management of their logistics.

This type of logistics operator is in charge of provide storage space and transport of goods. However, the organization of these resources remains in the hands of the contracting company. Suppliers only facilitate access to these resources, without taking responsibility for their management.

The 3PL logistics operators (TThird Party Logistics) They have their own warehouses and transport fleets. They also take responsibility for the management of these resources. Thus, contracting companies are authorized fully delegate its processes for storing and transporting goods.

types of logistics operators

This is perhaps the most common of outsourcing contracts. In general, because of the solidity offered to contracting companies, it is generally established in long term contracts. Thus, a stock plan can be schematized, for example, so that it is never “broken”. In this year of the pandemic, it created a lot of issues that you may have seen in the news. For example, in Spain, an entire production line was shut down just because of the lack of semiconductors.

They are also known as main logistics providers or LLD (Main logistics provider). Its difference from the previous ones is that they only manage the supply chain of contracting companies. It goes beyond transport and storage only.

In other words, they do not provide assets such as warehouses or means of transport. It is devoted exclusively to planning, coordination, advice and supervision. In fact, these types of operators are usually in charge of communications with 3PL operators in the long term. These provide the physical infrastructure to make the logistics operation possible.

Its main characteristic is to manage several supply chains around the world. When you hire one of them, you delegate your entire logistics process 100%. Its most specific job is the management and organization of logistics strategies. Therefore, they often outsource other types of logistics operators to perform the physical tasks. However, your relationship with them is generally stable and long-lasting.

You could say that 5PL suppliers These are companies that stand out for their communications. They must have a fluid and stable relationship with all the other parties: customers and distributors.

Some conclusions

Among the different types of logistics operators, the most important is always the essential: warehousing and distribution. Therefore, from Trade Journal We are committed to collaborating with all the operations that are offered to us. If you want to keep learning about him outsourcing logistics services, we recommend that you read this note. And as always, if you have any questions, you can leave them in comments or send us an email from the contact section.

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