Supply Chain Performance

What is 1PL, 2PL, 3PL, 4PL and 5PL? Differences between logistics operators

In an increasingly globalized and competitive world, having a good logistics operator is key to optimize your distribution processes, logistics services, warehousing services…

On July 29, 2025

In an increasingly globalized and competitive world, having a good logistics operator is key to optimize your distribution processes, logistics services, warehousing services and last mile transportation. But did you know that there are different types of logistics operators classified by levels (PL)? In this article from FM Logistic, an international logistics operator, we explain what each one means, their differences and how to choose the one that best suits your logistics needs.

What is a PL or type of logistics operator?

The acronym “PL” stands for Party Logistics and refers to the degree of outsourcing of a company’s logistics services. The higher the number (1PL, 2PL, 3PL, etc.), the higher the level of involvement of the logistics operator in the supply chain.

What is 1PL?

A 1PL (First Party Logistics) refers to a manufacturer or company that manages its own logistics without subcontracting external services. The entire process (warehousing, transportation, distribution) is carried out with its own means.

What is 2PL?

A 2PL (Second Party Logistics) is a provider that offers basic logistics services such as transportation or warehousing, but is not integrated into the customer’s operations. It usually has its own fleets or leased warehouses.

What is 3PL?

A 3PL (Third Party Logistics) offers more complete logistics services, including transportation, warehousing, order picking and inventory management. The operator is more closely integrated with the customer and can use shared technological tools.

What is 4PL?

A 4PL (Fourth Party Logistics) acts as an integrator that manages the customer’s entire supply chain, outsourcing to other providers (including 3PLs). It usually has a more developed strategic and technological vision, acting as a full logistics partner.

What is 5PL?

A 5PL (Fifth Party Logistics) goes one step further and specializes in managing complex logistics networks through digital and automation solutions. Its approach is based on big data, artificial intelligence and collaborative platforms, making it ideal for e-commerce and global supply chains.

Main differences and advantages

Here is a comparison table in HTML with the differences between the different types of logistics operators:

Type of PL	Responsibility	Services offered	Advantages
1PL	Own company	Inland transportation and warehousing	Total control, no external dependence
2PL	External supplier	Transport or storage	Reduction of fixed costs, access to infrastructure
3PL	Operational collaboration	Integrated logistics: warehousing, transportation, picking	Scalability, service improvement, time reduction, etc.
4PL	Strategic management	Coordination of several 3PLs, global optimization	Complete vision, efficiency, data-driven decision making
5PL	Advanced digital management	Automation, big data, artificial intelligence	High efficiency, flexibility, ideal for e-commerce

How to choose a logistics operator for your operations?

Choosing the right logistics operator depends on several factors:

Volume of operations: Do you have a complex supply chain or just need one-off support?

Technology: Does your supplier offer digital solutions and real-time traceability?

Flexibility and scalability: Can it grow with you if your demand increases?

Geographic coverage: Do you operate in the areas where you need to distribute?

Commitment to sustainability: Do you have environmentally friendly processes and fleets?

Analyzing these aspects and comparing options will help you make an informed decision. At FM Logistic, we are ready to be your strategic supply chain partner.