IMPARGO's transportation and logistics glossary

Find the definitions of the most important terms used in transportation and logistics industry

IMPARGO's logistics glossary/5/Fifth Party Logistics (5PL)

What is the meaning of Fifth Party Logistics (5PL)?

A system known as fifth-party logistics, or 5PL, is one in which a company (a client) outsources every aspect of its supply chains to a logistics service provider. The 5PL company is involved in the organization, planning, and execution of the client's logistics plans.

5PL controls all the supply chain networks while simultaneously using the services of third-party logistics (3PL) and fourth-party logistics (4PL) via the various supply chain activities. Additionally, 5PL businesses set prices and, occasionally, renegotiate the previously agreed-upon price.
 

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