We all have known the terms "3rd party logistic providers" & "4th party logistics providers" but have came across terms "5th & 6th party logistics" ?

Dear Muhammad,

 

I have not heard about5PL or6PL and honestly do not know any company using5th or6th party logistics.  Seems like a made up fancy name :). I am also wondering whether it would make any sense to have more stake holders in the supply chain process. The actual vendor and customer would end up paying more for the whole process and gaining what kind of benefits, I have no clear ideas. 

Hello Mahmoud,I try to search about5th PL and6th PL and didn't find any academic articles refer these terms. Also I search in CPIM and CSCP new courses (2014) and can't find any data.

thanks

Dear All,My understanding about these terms can be simply explained by this example:Toyota has its own LSP and its supplier DENSO has its own LSP, by this we have already4 different parties in the chain. If Toyota is connected with its Tier2 even Tier3 suppliers and their LSPs, these will be5th or even6th party logistics players. But really, these terms are not very much familiar or usable, as they just indicate level distance inside the supply chain theoritically, more than practically.

I have came across this term during my certification of CSCP , im am sure that these terms do exist , it is a matter of finding industry in which this function is being practiced.

 

 

 

Hello Muhammad

I agree with Tahir, it does not make sense to add more stake holders into the process. However in my experience, so far, I have not come across anything above a4PL. In case you have come across these terms, could you please provide us a link to the article, so that we can also see what the new 'unknown' developments coming about.