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Navigating the Spectrum from 1 to 6PL in the Age of Technology and Innovation

In: The Road to Outsourcing 4.0

Author

Listed:
  • Mohammadreza Akbari

    (James Cook University)

Abstract

In this chapter, an exploration unfolds into the fascinating world of logistics outsourcing, which has undergone a transformational change over the years. Outsourcing logistics services has become increasingly popular among businesses as it offers cost reductions, efficiency improvements, and enhanced core competencies. The logistics outsourcing industry has evolved from 1 to 5PL, with the emergence of 6PL incorporating ML and AI for optimized supply chain processes. Models range from in-house (1PL) to comprehensive services (3PL), with 4PL managing multiple 3PLs and 5PL using technology for end-to-end control. The advent of 6PL marks a milestone, enhancing supply chain optimization. The chapter explores 6PL’s benefits like improved inventory and transportation, cost reduction, and challenges such as data security and provider/system integration. The insights provided in the chapter are valuable for logistics professionals and business leaders seeking to leverage technology to improve their supply chain processes in a rapidly evolving business landscape.

Suggested Citation

  • Mohammadreza Akbari, 2024. "Navigating the Spectrum from 1 to 6PL in the Age of Technology and Innovation," Springer Books, in: The Road to Outsourcing 4.0, chapter 0, pages 147-167, Springer.
    • Handle: RePEc:spr:sprchp:978-981-97-2708-7_7
    DOI: 10.1007/978-981-97-2708-7_7
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