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What is 4PL (Fourth-Party Logistics)?

A company that manages all parts of the supply chain for a business, working with 3PL providers (who handle transportation and warehousing). Unlike 3PLs, 4PLs don’t own any trucks or warehouses but act as the main organizer to oversee everything.

Example. A global electronics manufacturer uses a 4PL to manage their entire supply chain network, including coordinating multiple 3PLs across different regions, optimizing transportation routes, and managing supplier relationships.

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