| 3PL > | < 4PL | ||
| Standard | Advanced | Complete | Integrated |
| Transportation services Carrier selection Rate negotiation Fleet management Warehousing Cross docking Pick and Pack Distribution (direct to store/home) Dispatching Delivery documentation Shipment consolidation | Vendor managed inventories Stock accounting Customs clearance and documentation Assembly Packaging Labeling Managing product returns Financing Retail delivery, set up and on site training Inventory tracking | Order planning and processing Information and Communications Technologies (ICT) management Single invoice Landed duty paid cost (per piece) Payment collection Real time inventory updates Just in Time (JIT) inventory management | Production planning Sourcing Routing transit times air vs. ocean Supply chain consulting Real time supply chain monitoring and adjustment |
Source: adapted from OECD, Logistics Integration in the Asia-Pacific Region, 2000. CPCS Transcom.
In addition to offering standard transportation services to its customers, such as transportation and warehousing, third-party logistics providers are delving into value-added activities within commodity chains. More advanced services involve performing added value functions on the cargo itself, such as packaging and labeling. A step further would involve complete management of the concerned supply chains, namely financial transactions and the management of information and communication technologies. Fourth party logistics providers (4PLs) focus upon an integrated view of the supply chain and in which way changes in production planning, sourcing, and routing (the usage of a series of 3PL) can help reduce costs and improve the reliability of the supply chains of their customers.