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BTW for anyone that is looking into this space, the term I've seen used around is 3PL (AKA Third Party Logistics). Lots of old-school as well as new-age compani

• cosmie 10y ago
  Contract Logistics and 4PL are also common terms useful when researching. The difference tends to be the amount of hand holding and abstraction. With 3PL, you have to know what you're looking for, research 3PL providers that fit those needs, get quotes from them, select the most appropriate one, monitor their ongoing performance, and all that jazz. You essentially still need someone internally with the knowledge to do all of that, even if you're outsourcing the physical infrastructure. Until you hit a certain size, it's a very transactional relationship. With 4PL, you effectively hire a supply chain/logistics consulting company. They can help you design and streamline your internal processes, they identify the most appropriate 3PL provider for your needs, they leverage their industry relationships and knowledge to get you the best deal you're going to get, they handle the day to day issues that crop up (like pushing back on a provider to expedite a shipment when they screwed up, and getting them to eat the expedite cost instead of passing it through to you). 4PL is more expensive, but you don't know what you don't know. And a 4PL provider teaches you what you don't know, while making sure you don't shoot yourself in the foot during the process.