Shipping and delivery process can be a little intriguing sometimes, thus for making it a little convenient logistics companies were introduced. These logistic companies function as the pillar of the supply chain while delivering swift services. As onlookers and consumers, we tend look at the things that are superficially visible, but if we dig a little, we will get to know that there are various models of logistics that that any folds within. The logistic companies begin the entire process by deciding the exact number of PL’s. Let’s begin with understanding the basics followed by various models of logistics.
What Does PL Stand for?
PL in logistics stands for ‘Party-Logistics Provider’. It is a supply chain model that highlights the number of parties involved in the process of transportation and logistics management. There are so many layers in which logistics companies’ function. The layer of the supply chain management in Qatar includes 1PL,2PL,3PL,4PL,5PL,6PL,7PL. . Let’s explore these shipping layers in detail.
Various Models of Logistics in Qatar
There are various ways in which a company manages its logistics. Few manufactures and into self-logistics while others are dependent on outsourcing the transportation of their deliverables. Let’s decode them into entirety and begin with understanding the multiple layers in which the project logistics companies in Qatar work.
1PL or First Party Logistics: Self Logistics
There are many manufacturing companies who work without getting associated with any logistic or warehousing company or as a matter of fact any third party uses the IPL model of logistics. They single-handedly manage all their work from administration till shipment. Here no extra payments are involved and only the seller and buyer get the profit.
2PL or Second Party Logistics: Bridging Gap Between Buyer and Seller
This model highlights the manufacturer’s dependency on transportation and logistics services. This the involvement of third party can be witnessed although the administrations keep a sharp eye on these third parties and keep a track of all the activities that being involved. This model of logistics is an asset-based carrier that bridges the distance between the end buyer and the seller. However, the parties get involved for a very short period of time.
3PL or Third-party Logistics: Basic Logistics Service Provider
These companies function in an integrated pattern including warehousing management, administration and transportation services. You can customize the services based on your requirement and nature or niche or nature of goods that are to be shipped. These companies range from inventory management, labeling, packaging, customs, IT services such as tracking products, ascertaining delivery status, and door to door services in Qatar. This model of logistics is common because the services are carried out by a logistics solutions provider who have their expertise in domestic as well as international shipment. Their course of services is divided into 3 sub categories.
- Standard 3PL Provider: Includes basic services such as packing, warehousing, picking and distribution.
- Service Developer: advanced services like tracking of the shipments, specific packing, security systems, and cross-docking are provided. And these are achieved with the help of strong IT support.
- Customer Adapter: This service integrates itself along with the customer and controls the complete logistics functions. It is the highest 3PL provider.
4PL or Fourth Party Logistics: Entire Supply Chain Solution
The clients get to avail the benefit of entire supply chain as this logistics services deals in the non-asset based and unconventional works in assembling the resources, capabilities and technologies of organizations. Thus, it is termed as a unique supply chain management that worked in an absolutely different arena.
5PL or Fifth Party Logistics: Solution Optimization Services
This Models of Logistics service combines the services of 3PL along with other services to negotiate the tariff with shipping companies. 5th party logistics takes care of the interactions between the suppliers and the customer along with taking the entire responsibility for satisfactory services. They operate between 4PL and other companies along with planning and implementing an organized shipment procedure while tracking the inventory.
6PL or Sixth Party Logistics: Helps Logistic Industry to Sustain
This makes the logistics industry more sustainable. It gives ideas to lead to a sustainable work environment for the logistics industry. centered on the use of Artificial Intelligence for the aggregation and analysis of data present in heavy volumes for a robust progression in the supply chain management.
7PL or Seventh Party Logistics: Combines 3PL and 4PL
7PL Logistics functions on the line of 4PL Logistics providers owning the 3PL functionalities. It is responsible for asset carriers required for undertaking the 3PL services, meanwhile keeping track of supply chain management. It combines few logistic models in Qatar to render a smooth service to the customers.
Logistics and omnipresent and an integral part of lives. Everything that we can set our eyes on was once manufactured and then shipped to the places where it lies now. To deliver a product to a certain location combination of various models of logistics are uses. Now that you have come across the necessary information, it will be a little convenient for you to choose the correct logistics service provider for you.