What is fourth-party logistics?

Fourth-party logistics, also known as 4PL, is an operational model in which a business outsources its entire supply chain management and logistics to one external service provider.

Unlike a third-party (3PL) provider, which oversees part of supply chain operations for a business, a 4PL provider is usually the single point of contact for supply chain management. This provider has a broader scope of responsibilities that include managing resources, technology and infrastructure and providing strategic insights and management.