3pl logistics meaning

Fifth-Party Logistics (5PL). A company that has the ability to oversee a vast network of supply chains is known as a 5PL, or fifth-party logistics provider. An organization hires a 5PL to handle the planning, coordination, and management of all supply chain operations. 5PL providers typically employ and oversee other 3PL and 4PL businesses to handle specific duties. For example, a logistics company manages the entire supply chain on behalf of the farmer from production to delivery.