First-party logistics
A First-party logistics provider (abbreviated 1PL) is a firm or an individual that needs to have cargo, freight, goods, produce or merchandise transported from a point A to a point B. The term first-party logistics provider stands both for the cargo sender and for the cargo receiver.
Type of 1PL
A 1PL can be anything from a manufacturer, to a trader, buying office, importer/exporter, wholesaler, retailer, and a distributor in the international commerce field.
It can also be institutions such as government, department, NGO, associations, military, and post.
An individual or a family removing from one place to another also needs to have its personnal effect being transported from their place of origin to their new place, and is as such being considered as a first-party logistics provider.
Type of transportation
Typically the first-party logistics providers subcontract their transportation's needs to 2PLs and 3PLs, which are companies specialized in transportation. This helps the 1PL to benefit from cheaper transportation prices thanks to the specialization of the 2PLs and 3PLs, and the subsequent economies of scale.
The transportation needed by the 1PL can be anything from transportation by ship, barge, aircraft, train, van or truck.
Terminology
In the freight industry, first-party logistics providers are called differently depending whether they are the sender of the merchandise or the receiver of the merchandise:
- Sender = Consignor = Shipper
- Receiver = Consignee
In the "PL" terminology, it is important to differentiate the 1PL from the:
- 2PL, which are actual carriers,
- 3PL, which are one stop shops for the 1PL, such as freight forwarders or courier companies,
- 4PL, which are consulting firms such as Deloitte, SCMO (company), BMT Limited, or Accenture.
See also
- Courier
- Freight forwarder
- 2PL, Second-party logistics provider
- 3PL, Third-party logistics provider
- 4PL, Fourth-party logistics provider
- Freight
- Shipping
- Logistics
- Transportation
- Supply chain management