Difference Between 3PL and 4PL Logistics

Published on July 1, 2025

• 7 min read

Logistics is an inherent part of supply chain management that supports the flow of finished goods till the time it is delivered to the customers. In the complex world of supply chain management, it is essential to understand the proper logistics options that support your business needs where profits are maximised. The terms 3PL and 4PL are often used in a supply chain, but what exactly are 3PL and 4PL? In this article, we are going to explain the difference between 3PL and 4PL logistics, along with the features, advantages and disadvantages.

Table Of Contents

What is 3PL Logistics?
Advantages of 3PL
Disadvantages of 3PL
What is 4PL Logistics?
Advantages of 4PL
Disadvantages of 4PL
3PL and 4PL Logistics Differences
Harness The Advantages of 3PL and 4PL Service From WareIQ
Conclusion
FAQs About 3PL and 4PL

What is 3PL Logistics?

3PL stands for Third Party Logistics, and it refers to the outsourcing of particular logistics functions to a third party or an external service provider. The 3PL takes care of logistics functions on behalf of a business. Some functions that 3PL performs include warehousing, transportation, and distribution.

The key features of 3PL are explained below:

Primary Services

The primary service of 3PL includes transportation and managing freight operations and shipping. Also, warehousing and distribution are some of the primary functions that 3PL performs.

Offers Customisation

The services offered by 3PL can be tailored to meet the business needs in terms of logistics.

Integration of Technology

3PL companies are unknown in leveraging technology in order to provide services to a business for logistics. They use technologies such as warehouse management systems (WMS) and transportation management systems (TMS) to improve the process.

Scalability

With 3PL providers, it is easy for a business to scale up its logistics operations. Businesses also have an option to scale down their logistics operation. Hence, it is entirely flexible for businesses that deal with seasonal goods.

Advantages of 3PL

3PL offers numerous advantages when it comes to logistics operations for any business. Below are the advantages that a business can get via 3PL:

When any business outsources logistics operations to a 3PL service provider, it eliminates the need for infrastructure and technology and the labour required to do the logistics operation. This can lead to significant cost efficiency.
3PL service providers offer complete flexibility when it comes to the scalability of any logistics operation in a business. Businesses can either scale up or scale down as per their business requirements.
Businesses can delegate the logistics operation to 3PL providers and focus more on other parts of the supply chain. This helps to redirect the attention to the strategic growth of the business.
3PL providers have in-depth industry knowledge, which can help a business exercise its expertise in improving overall operational efficiency.

Disadvantages of 3PL

Along with several benefits, there are also a few limitations that businesses can face when dealing with a 3PL. Below are some of the disadvantages of 3PL:

As other logistics operations under 3PL are redirected, businesses can find it tricky to oversee all the operations and functions remotely.
The service’s quality and consistency can vary depending on the 3PL provider’s operational module.
When the logistics operations of a business are dedicated to a third-party provider, it can increase the risk of potential disruption in terms of service due to overly depending upon the providers.

What is 4PL Logistics?

4PL stands for Fourth Party Logistics. Contrary to the services offered by 3PL, 4PL logistics is beyond just managing the logistics. 4PL providers act as integrators that integrate all the aspects of the supply chain. Hence, a 4PL provider performs strategic and consultative roles, including multiple 3PL functions. The primary goal of having a 4PL is to ensure that there is seamless coordination across the entire supply chain.

The key features of 4PL are explained below:

Offers End-To-End Management

4PL providers work on a framework that helps a business with the entire supply chain process. Their functions include procurement, production, management, logistics, and also delivery. The primary aim of 4PL providers is to provide operational efficiency.

Strategic Partnership

Unlike 3PL, which focuses mainly on logistics operation and execution, 4PL providers offer strategic guidance. This guidance is helpful in optimising the supply chain performance and maximising the profits.

Vendor Management

One of the key functions of a 4PL provider is to coordinate with various stakeholders, suppliers, and also 3PL providers to streamline the complete supply chain operations.

Technological Use

In order to have a seamless supply chain operation, 4PL uses various innovative technologies like AI and Blockchain to improve functionality and productivity while providing real-time insights.

Advantages of 4PL

Businesses can harness various advantages via 4PL providers. Some of the advantages are listed below:

4PL providers offer seamless integration of all the processes and functions of a supply chain.
With the help of analytics and technology, 4PL improves a business’s decision-making abilities.
It helps to coordinate with all the stakeholders.
4PL providers aim to reduce the cost and improve the efficiency of the business.

Disadvantages of 4PL

Below are the disadvantages of 4PL:

Given that 4PL services are more strategic and also include all the processes, they are more expensive compared to 3PL.
As a 4PL service provider integrates all the services and processes under a supply chain, it can become tricky to have clear communications at times.
Due to the comprehensive nature of the 4PL services, setting up and getting results can take longer.

3PL and 4PL Logistics Differences

Below is the table that explains the specific difference between 3PL and 4PL logistics concisely:

Comparison Aspect	3PL (Third Party Logistics)	4PL (Fourth Party Logistics)
Scope	Operational in nature	Strategic and consultative
Functions	Performs functions such as transportation, warehousing and distribution	Oversees and acts as an integrator for almost all the processes in the supply chain
Control	Limited to particular services	Has complete control over the supply chain processes
Technologies Used	Uses WMS and TMS	Uses ERP, AI and Blockchain
Costing	Comparative lower	Higher as it performs functions that encompass all the processes of the supply chain
Vendors Management	Is a vendor in a supply chain	Looks over functions from different vendors, including 3PL
Customisation	Offers tailored experience	Provide end-to-end solutions

Harness The Advantages of 3PL and 4PL Service From WareIQ

WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade)

Our solution offers:

Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes
Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance
Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment
Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections.
A host of seller enablement and support – dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc.

Suggested read – Is WareIQ a 3PL or 4PL, or Something Else?

Conclusion

In modern supply chain management, the functions are getting more complex each day. Hence, it becomes necessary to involve service providers like 3PL and 4PL to increase the efficiency and productivity of businesses. Choosing between 3PL and 4PL will depend on the business requirements in terms of end goals, complexity, and budget. Integrating 3PL and 4PL can help businesses get maximum benefits out of the different processes in the supply chain.

Also check – Types of Logistics

FAQs About 3PL and 4PL

Are 3PL services apt for small businesses?

Yes, services from 3PL providers are excellent for optimising the operations of a small business.

Can a business utilise 3PL and 4PL?

Yes, integrating both 3PL and 4PL will help businesses perform better.

Which service is more expensive?

4PL is more expensive than 3PL as it includes looking after the entire supply chain.

Which technology is used by 4PL?

4PL provider utilises technologies like ERP, AI and Blockchain

Is 4PL better than 3PL?

It is entirely up to the requirements of a business. If a business is exclusively looking for logistics services, then 3PL is better. If businesses are looking for end-to-ed support, then 4PL is better.

Supercharge your fulfilment with WareIQ now, contact our team.

Author

Mariyam Jameela

Mariyam Jameela works as a content writer at WareIQ. With a proven track record of working with renowned brands such as GO Digit, Urban Ladder, Juspay, Hong's Kitchen, and many more. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers

Read all of Mariyam Jameela's Posts

Why Traditional eCommerce Warehousing Fails in the Age of Quick Commerce

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What Has Changed with Quick Commerce In traditional eCommerce, brands could manage with regional warehouses, weekly POs, and 30-day stock cover. But in Quick Commerce, everything runs on tighter timelines and smaller geographies. Some category leaders now receive 30 to 40 POs daily from a single Quick Commerce platform. Each PO might require 800 to 1,000 units, dispatched across 30 or more city nodes. Even if your brand is not there yet, the direction of the industry is clear. Here’s what Quick Commerce demands: Inventory placement at a city level, not just by region Faster turnaround on POs, sometimes daily or alternate day High accuracy in dispatch and delivery Appointment-based delivery slots to avoid rejections Clear proof of delivery to resolve claims and disputes This is very different from the usual eCommerce fulfillment model, where stockouts may impact only a few customers. In Quick Commerce, a single stockout can affect platform visibility and future PO volumes. 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Related read - Why Seller Fill Rates Are the Backbone of Quick Commerce How WareIQ Helps Brands Adapt At WareIQ, we help brands re-structure their fulfillment model to suit both eCommerce and Quick Commerce channels through: Shared inventory pool across Amazon, Flipkart, Nykaa, D2C, and Quick Commerce platforms City-level inventory planning that keeps stock closer to demand and avoids overstocking Appointment-based delivery model to meet platform SLAs and reduce rejections Proof-backed dispatches with automated POD workflows for dispute resolution Our systems and processes are built to make Quick Commerce fulfillment repeatable, compliant, and growth-oriented. Not Just for High-Volume Brands Even if your brand is currently receiving just one PO a week from a Quick Commerce platform, the right infrastructure today ensures you are ready to scale tomorrow. Building a flexible and future-ready fulfillment network helps avoid firefighting and lost sales as volumes grow. 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Frequently Asked Questions Why is traditional eCommerce warehousing not suited for Quick Commerce?Traditional eCommerce warehousing relies on regional hubs and long inventory cycles, which can't keep up with the fast, local, and frequent fulfillment needs of Quick Commerce.What are the key fulfillment challenges in Quick Commerce?Brands face issues like delayed dispatches, missed delivery slots, stockouts, and difficulty managing city-level inventory in Quick Commerce without the right warehousing model.How does Quick Commerce impact inventory planning and dispatch?Quick Commerce requires city-level inventory placement, faster PO turnaround, and high dispatch accuracy—shifting away from centralized, bulk inventory models.What happens if a brand can't meet Quick Commerce fulfillment expectations?Brands that fail to deliver consistently face reduced PO volumes, lower visibility on platforms, frequent rejections, and ultimately, missed revenue opportunities.How can WareIQ help brands succeed in Quick Commerce fulfillment?WareIQ enables brands with shared inventory pools, city-level planning, appointment-based deliveries, and automated proof-of-delivery systems for efficient Quick Commerce operations.

June 30, 2025

Difference Between Logistics and Supply Chain Management Explained

The terms logistics and supply chain management are often interchanged. Although there are various similarities between logistics and supply chain management, they are entirely different from one another. They both represent different functions when it comes to managing goods, information and resources. Businesses must understand the difference between supply chain management and logistics in order to optimise operations in the right way and also deliver value to customers. In this article, we will look deeper into the difference between logistics and supply chain management in terms of definitions, along with its roles and functions. What Is Supply Chain Management? Supply chain management (SCM) is the entire process of efficiently producing and delivering goods or services. All the processes that come in between are considered a part of the supply chain. It involves coordinating and involving different activities and stakeholders to meet customers' demands in the end. Below are the key components of supply chain management: The first component or step in supply chain management is planning. Planning involves analysing market data, understanding customer expectations, and finding the proper means to satisfy the customer's demand. Lack of planning may lead to sudden cost increase and unsynced and messy production and distribution processes, which in turn may cause customers to be unsatisfied. The next essential component is the procurement of raw materials that will be used for production purposes. This process includes identifying suppliers and also negotiating contracts apart from acquiring materials. Next is production, where the raw materials are converted into the final goods that are sent out to the customers. The next step is logistic management, which includes the transportation, warehousing, and distribution of goods. Apart from these processes, it is also essential that processes are overseen so that they run smoothly and glitches can be avoided. Related - Top Supply Chain Management Companies in the world What Is Logistics Management? Logistics is a part of the supply chain where the finished goods are stored, preserved, and distributed. Logistics management primarily focuses on the storage and movement of goods from the point of origin to the point of destination (delivery to the customer). Planning, executing, and monitoring are also required in logistics management for the proper movement of goods. Below are the key components of logistics management: One of the key components of logistics is to keep the goods secure until they are sent out for delivery. Proper warehousing is essential to maintain the quality and condition of the goods for a long time. It is significantly necessary for goods that are fragile or perishable. Proper temperature and pressure control systems are required in the warehouse. Next is inventory management. Businesses must monitor stock levels to avoid situations like overstocking and understocking. Another critical component of logistics management is the transportation of goods via different modes, such as rail, road or sea. It is essential to pick the proper mode of transportation to optimise resources while reducing unnecessary costs. One of the most vital components is order fulfilment. It involves activities to ensure that the goods were delivered to customers on the promised timeline. Also, in the case of returns, logistics management involves handling returns, replacing them or recycling them. The primary goal of logistics management is to deliver goods on time while maintaining their best condition. What Is the Difference Between Logistics and Supply Chain Management? Logistics and supply chain management are intertwined and closely related. Logistics is an essential part of the whole supply chain management. There are some similarities, but they are essentially different. Below is a table that shows the difference between supply chain management and logistics management: Comparison AspectLogistics ManagementSupply Chain ManagementScopeIt is a part of supply chain management that focuses more on handling goods, their movement and delivery.It has a much larger scope. Several processes, like logistics, are part of much larger end-to-end business processes.ObjectiveEnsure proper storage and transportation of goods from one place to another while maintaining efficiency.A smooth flow in all the processes leading to timely delivery at the end, and maintaining the quality of the products to ensure customer satisfaction.Key Activities Warehousing, inventory control, transportation and order fulfilment.Planning, sourcing materials, production, logistics, forecasting demand and supply chain management.Technologies UsedUses software like GPS, tracking, routing, and warehouse management.Technologies that are majorly used are IoT, blockchain, ERP and AI for end-to-end assistance.Stakeholders InvolvedLogistics management involves stakeholders like transport companies, warehouse operators, and delivery partners. It includes all the stakeholder's rights, from the supplier and manufacturers to retailers and logistics service providers.Primary FocusIt primarily focuses on the movement of goods up until the deliveryIt focuses on all aspects of business operations, including logistics management. Similarities Between Logistics Management and Supply Chain Management Since logistics management and supply chain management are correlated, there are several similarities between the two. Below are significant similarities between supply chain management and logistics management: Both processes aim to provide efficient delivery of final goods to the customer for profit. Both processes eventually aim at a smooth flow of goods, whether it is between the supplier and the business or between the business and the customer. Both processes ultimately help to optimise resources and maximise profits. For Smooth Logistics and Supply Chain Management, Choose WareIQ's Fulfilment Plus Shipping Services WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade) Our solution offers: Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes Multi-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance Inventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishment Leverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections. A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc. Conclusion Both logistics management and supply chain management are vital processes that ensure a business's success. As these processes are correlated and co-dependent, it is easy to get confused between them. They have similarities, yet they are pretty different from each other. Logistics management is an essential process in the whole supply chain management. Logistics mainly included storing, managing and delivering the goods that a business produces. On the other hand, supply chain management is a process that involves overseeing all the processes, from planning and acquiring raw materials for production to efficiently delivering goods to the customer. Customer satisfaction while maintaining profits is the ultimate goal of both logistics management and supply chain management. FAQs About Logistics and Supply Chain Management Is it possible to have supply chain management without logistics being involved?No, logistics is an inherent part of supply chain management. Without logistics, supply chain management will lose out on various aspects like warehousing, inventory, control, and delivery.What is the difference between supply chain management and logistics management?The main difference between supply chain management and logistics management is the scope and the focus of these processes. Logistics mainly focuses on the transportation, inventory control, and warehousing of goods. At the same time, supply chain management integrates logistics with all other processes in order to ensure an efficient flow of goods from production to delivery.What are some challenges in logistics management?Some challenges faced during logistics management can be rising transportation cost, optimising routes, ensuring timely delivery and management of returns.What is reverse logistics?Reverse logistics mainly involves handling returns. In case the return is impossible, it can further include recycling and disposal of goods.Does supply chain management impact customer satisfaction?Yes, since supply chain management involves ensuring all the processes in a business run smoothly. The end goal is definitely customer satisfaction. One error in any of the processes, from the sourcing to the production to the delivery, can lead to poor quality products or untimely delivery, which can impact customer satisfaction.

June 27, 2025

Major Ports in India: Key Hubs for Global Trade

One of the key aspects that facilitate global trade is ports. They are the key hubs for global trade. India has a vast coastline of over 7500 km, and hence, numerous seaports are crucial hubs for shipping and logistics. These ports are used to export and import goods and materials from around the world. In this article, we will explore the top 13 major ports in India and their roles in improving the country's economy. How Many Major Ports in India? India has 13 major ports that the government manages; they are under the Ministry of Shipping and Waterways. List of Major ports in India Below is a complete list of major ports in India 1. Mumbai Port, Maharashtra Source - orbitshub Located on the western coast of India, Mumbai Port is a central Gateway that handles millions of tons of cargo every year. It handles 55% of the total cargo that is traded through India. In 2023-24, the port handled 67.26 million tons of cargo. Mumbai Port is an essential part of India's trade infrastructure that not only exports and imports goods, petroleum, textiles, and machinery but also handles passenger traffic. In 2023, 182,600 passengers were handled at the Mumbai Port. 2. Chennai Port Chennai airport is India's most prominent port and is vital to the country's international trade. It is equipped with state-of-the-art infrastructure, allowing it to accommodate large vessels. With strong connectivity, the Chennai port is the ideal choice for global trade, contributing approximately 18.6% of the total container volume. It can handle 2.5 million TEUs annually. In 2023-24, it handled 46.76 million tons of cargo. 3. Cochin Port, Kerala Located on the southern western coast of India, the Cochin port plays a vital role in the county's trade via waterways. Its strategic location makes it ideal for the trade of tea, spices, and petroleum. The port has a capacity of 32,03 million metric tonnes and can also handle 0.6 million units of TEU traffic. 4. Visakhapatnam Port, Andhra Pradesh Visakhapatnam port is one of the busiest ports on India's eastern coast. In 2022-23, the port managed approximately 81.09 tonnes of cargo, making it the third-largest port in India. According to recent reports, the reported annual container traffic is about 3.95 million TEUs. Also, according to the Container Port Performance Index 2023, Visakhapatnam port ranks 20th globally. 5. Kandla Port, Gujarat source - orbitshub Located on the Gulf of Kutch, the Kandla Port of Gujarat is mainly known for exporting salt and textiles. It is also prominently known for trading edible oils, fertiliser and petroleum products. The port has an annual capacity of 2.5 million metric tons of cargo and can handle a traffic of 0.7 million units. TEU. 6. New Mangalore port, Karnataka Located on the southwest coast of India, the New Mangalore Port is another significant source of exports and imports. In 2022-23, the port handled 34.119 million tons of cargo. New Mangalore is known for exporting commodities like iron, petroleum products, and coal. 7. Shyama Prasad Mukherjee Port Trust, West Bengal Source - telegraphindia Shyama Prasad Mukherjee Port Trust, also known as Kolkata Port Trust, is located in eastern India. In 2022-23, the port handled over 92.34 million tons of cargo. It has a processing capacity of 107,000 TEUs and handles cargo such as agricultural products, INO, and coal. 8. Paradip Port, Odisha Paradip Port is a vital hub for India's trade via waterways. Located on the eastern coast of India, it is mainly used for exporting coal, fertilisers and iron ore. In 2022, the port processed 116.1 million metric tons of cargo and has a capacity of 10,020 TEUs. 9. Ennore Port, Tamil Nadu Ennore Port is also known as Kamarajar Port. In 2022, it handled 4.29 million tons of cargo and 61,515 TEUs. Over the past few years, Ennore Port has increased its handling capacity, thereby enhancing its role as a hub for India's maritime trade. 10 Port Blair, Andaman and Nicobar Islands Port Blair is a prominent port that handles cargo such as cement, food, grains, and petroleum products. It is vital to the local economy as it maintains a supply chain for the island and the nearby regions. In 2023, the cargo traffic on Port Blair was approximately 1.88 million metric tons. 11. Jawaharlal Nehru Port (JNPT), Maharashtra Source - wikimedia Located in Mumbai, Jawaharlal Nehru Port (JNPT) is one of the largest container ports in India. It handles over 50% of the country's cargo. In 2024, JNPT handled 4.74 million TEUs, a growth of 13.38% compared to the previous year. Moreover, the port handled a cargo volume of 60.05 million tons. 12. Mundra, Port, Gujarat The report is one of the busiest sports in India. The port usually handles containers and cargo and transports liquid, bulk, coal, and other materials. In 2023, the port handled 7.4 million TEUs. In the years 2024-25, Mundra Port handled 17.6 million metric tons of cargo. The capacity of Mundra Port is constantly increasing, enhancing India's economic growth. 13. Mormugao, Goa Mormugao Port is famous for handling bulk cargo like iron ore. In 2022-23, the port handled 17.68 million tonnes of cargo, and in 2023, it managed 0.003 million TEUs. Role of Major Ports in India Ports in India are the backbone of the country's trade infrastructure. Handles over 60% of India's total cargo. Hence, it is very essential for international trade facilitation. Helps in improving the GDP by contributing significantly and supporting industries like mining, agriculture, and manufacturing. Ports have been generating employment opportunities for millions of people. Ports facilitate the transportation of goods and offer excellent connectivity through waterways. Have Seamless Shipping Operation with WareIQ's Smart Shipping Solutions WareIQ's smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times. Our solution offers the following capabilities: Multi-carrier engine enabling fast deliveries across 24,000+ pin codes Control Tower & automated workflows to minimise NDR & RTOs Same/Next-day delivery courier options Seamless Integration with your WMS, ERPs and Storefronts Shipping Badges to display precise Estimated Delivery Dates (EDD) Custom branded tracking pages and notifications to enhance customer experience Also check - A Quick Guide to the EXIM Policy of India and Its Importance Conclusion All the major ports in India are not just infrastructural development for the country but also the backbone of the country for facilitating international trade. In all, 13 significant ports connect India to the global market, improving economic development and supporting industrial growth in the country. Each year, these ports are handling more and more cargo, resulting in increased competition. Initiatives like the Sagarmala project and the privatisation steps ensure that there is more scope for ports in India. Indian ports will always continue to be key hubs for global trade. Suggested read - How to export from India FAQs About Major Ports in India Which is the oldest port in India?The oldest port in India is the Kolkata Port, which was established in 1870.What is the difference between a major port and a minor port?The central government governs major ports, while minor ports usually fall under the jurisdiction of state governments or even private companies.What type of cargo do the Indian ports handle?Indian ports deal in the transportation of cargo like crude oil, coal, fertilisers, agricultural products, and automobiles.Which is the largest port in India?Jawaharlal Nehru Port (JNPT) is the largest port in India.Which port is well-known for handling iron or exports?Paradip Port and Mormugao Port are well-known for exporting iron ore.

June 26, 2025