Managing a company’s supply chain can be a tremendously complex task. Most companies usually have an agency to manage it, so in this post we will explore what a logistics operator is and what it is for, as well as its most common functions and types.
Logistics operator, what is it?
A logistics operator is a business organization in charge of controlling and managing all the processes and formalities of a supply chain, starting from the origin to the destination of the goods.
It also manages the subsequent stages of supply, such as packaging, warehousing, transportation and distribution. The logistics operator acts on behalf of a company that requires these supply and transport services on a recurring or one-off basis.
What is a logistics operator for?
The most common functions of a logistics operator include the following, although, as you will see below, they will vary depending on the type of agency the operator is.
- Warehousing, with selection of the most suitable warehouses and their layout, as well as inventory management and optimization of goods, to ensure their distribution.
- Transportation of goods, elucidating means of transport and conditions, and supervision of shipments.
- Handling and packaging, choosing protection systems, as well as specifying how to handle each product in the warehouse and in transport.
Types of logistics operators
The types of logistics operators are classified according to the stages of the logistics chain over which they offer management services, with this being distributed as follows
logistics coordination
between the first and the fifth stage.
1PL Operator
First party logistics are the operators that are exclusively in charge of transportation. This is the most contracted phase, and includes not only the transportation service as such, but also the maintenance of the transportation fleet and its routes.
2PL Operator
These operators, the second party logistics, in addition to transportation, include storage services for the goods, using their own network of warehouses or managing any customs warehouses that may be necessary for logistics operations.
3PL Operator
Third party logistics adds to what has been seen previously the management of this same transport and storage. They are usually postulated as agencies of more personalized services, oriented to a long-term relationship, which influences the specific learning of each case, allowing a more precise attention to the client’s steps, such as the advice on the type of Incoterm.
4PL Operator
In the case of fourth parties, they do not have transportation or warehousing equipment or resources, so their functions and services are limited to the supervision and control of the distribution chain, with a 3PL agency providing the physical resources.
5PL Operator
They are eminently focused on combining the services of the 3PL and 4PL, thus offering the logistical coordination of the 4PL, together with the resources of the third party, positioning the fifth party as a full service agency.
We, Partida Logistics, are a logistics
logistics operator in Spain
with almost 100 years of experience in the sector. Can you guess what kind of logistics operator we are?
Go ahead, on our website you will get all the information you need to discover it.
