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3PL vs. 4PL vs. 5PL: A Quick Cheat Sheet
The 3PL/4PL/5PL labels get thrown around a lot, usually by someone trying to sell you a contract. Here's what they actually mean when you strip the pitch away. A 3PL — third-party logistics provider — does the physical work. Warehousing, picking, packing, shipping. They touch the freight. You hand them a SKU list and a service level agreement, they execute. Most of what people call "outsourcing their warehouse" is a 3PL arrangement. If you've got a 3PL partner running a 40,00
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