Logistics service provider

A logistics service provider (LSP) is a company that performs logistics functions on behalf of a shipper, ranging from single services to managing the whole supply chain. The tiers are graded: a 3PL (third-party logistics) provider executes physical operations, transport, warehousing, customs brokerage, and freight forwarding, using its own or contracted assets; a 4PL (fourth-party logistics) provider is asset-light and orchestrates multiple 3PLs and carriers as the single point of control over the client’s network. A 1PL is the shipper moving its own goods, a 2PL a single-mode carrier. The 4PL manages the chain; the 3PL runs it.