Fifth-party logistics provider ( 5PL ) is a relatively new term , and refers to a company that acts as an integrator , overseeing and coordinating the activities of multiple 3PLs , to optimise client supply chains . The 5PL model gained traction during the pandemic , as ecommerce businesses new to international shipping found themselves under increasing pressure .
Many were faced with attempting to handle cross-border complexities , such as customs rules and regulations , while also having to focus on the business of selling . The concept of 5PLs is still in its infancy , but the roles they play typically include :
n Providing a single point of contact for managing multiple 3PLs n Coordinating logistics activities across multiple regions or countries n Developing and implementing supply chain strategies n Providing supply chain analytics and business intelligence n Managing supplier relationships and procurement activities n Ensuring compliance with regulatory requirements and industry standards
Ultimately , a 5PL ’ s job is to provide a high level of supply chain visibility and control , while minimising the complexity and cost of managing multiple 3PLs .
The following are currently at the forefront of the emerging 5Pl market .
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