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Create visibility and efficiency in your supply chain management with 5PL (fifth party logistics)

The logistics business is growing at a rapid rate all over the world in order to cope up with the rising global trade environment. The movement of goods becomes fast and efficient within supply chain stream which can bring a huge cost savings for the companies. The companies find it useful to make use of planned management of the complete supply chain along with the of information technology.

So the logistics business is becoming extremely multifaceted and competitive day by day. As a result the logistics players are looking for new opportunities to improve and spread out their services. The logistics firms are switching over to e-business. Here lies the growth of 5PL or fifth party logistics.

The concept of the Fifth Party Logistics started in 2002 which creates scopes for new type of logistics service. But its system structure, theorists are still in a nascent stage.


The 5PL contains some similarities with 3PL but there are lots of differentiations in many aspects. The main feature of 5PL is to combine the demands of the 3PL into an immense volume for settling more approving rates among airlines and shipping companies irrespective of which generation of logistics solution fit in all.

5PL can be termed as an institution which maps, arranges and employs logistics solutions in support of a contracting party (basically for information systems) with the application of proper technologies.

5PL is constructed on the accomplishment of 4PL (controlling transport and shipping etc.) into the design and execution of innovative, elastic and extremely gainful global supply chains to give birth of a more planned & integrated systems of supply chain management with real time visibility and control.

5PL can be described as the arrangement of individual supply chains into a universal network purposefully handled by a solitary body. The logistics providers will be able to reap the benefits with concurrent visibility, pre-aligned logistics amenities like as transport, shipping, storage etc and better economies of scale through a web-based portal (fully protected with strict access control). which leads to superior performance and minor cost.

5PL concentrates on the actual operation to offer e-commerce technology with IT managed system providing great support to whole supply chain process connecting the suppliers and buyers and removing complexities in supply chain.

5PL can also be known as “zero party logistics” which generates an incorporated information chain connecting buyers and carriers.

5PL can be useful for SMEs as it works together and acquires a superior degree of resource operation to facilitate savings and brings in scopes and routes to marketplace for achieving the best possible solution.

Author by: Rajib Dey


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