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Outsourcing FAQ


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20. What is the difference between a 3rd party logistics provider and a 4th party logistics provider?

The term "fourth-party logistics provider" is a trademarked term owned by Andersen Consulting. It refers to the evolution in logistics from suppliers focused on warehousing and transportation (third-party logistics providers) to suppliers offering a more integrated solution. Among other services, fourth-party logistics providers include supply chain management and solutions, change management capabilities, and value added services in their offering. These companies are basically third-party logistics providers that either add these capabilities to their services or form alliances to provide the services.

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