First-party logistics - AbsoluteAstronomy.com

A First-party logistics provider (abbreviated 1PL) is a firm or an individual that needs to have cargo

Cargo

Cargo is goods or produce transported, generally for commercial gain, by ship, aircraft, train, van or truck. In modern times, containers are used in most intermodal long-haul cargo transport.-Marine:...

, freight, goods, produce or merchandise transported from a point A to a point B. The term first-party logistics provider stands both for the cargo sender and for the cargo receiver.

Type of 1PL

A 1PL can be anything from a manufacturer, to a trader, buying office, importer/exporter, wholesaler, retailer, and a distributor

Distributor

A distributor is a device in the ignition system of an internal combustion engine that routes high voltage from the ignition coil to the spark plugs in the correct firing order. The first reliable battery operated ignition was developed by Dayton Engineering Laboratories Co. and introduced in the...

in the international

International

----International mostly means something that involves more than one country. The term international as a word means involvement of, interaction between or encompassing more than one nation, or generally beyond national boundaries...

commerce

Commerce

While business refers to the value-creating activities of an organization for profit, commerce means the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural, and technological systems that are in operation in any...

field.

It can also be institutions such as government department, NGO, association

Voluntary association

A voluntary association or union is a group of individuals who enter into an agreement as volunteers to form a body to accomplish a purpose.Strictly speaking, in many jurisdictions no formalities are necessary to start an association...

s, military

Military

A military is an organization authorized by its greater society to use lethal force, usually including use of weapons, in defending its country by combating actual or perceived threats. The military may have additional functions of use to its greater society, such as advancing a political agenda e.g...

, and post

Mail

Mail, or post, is a system for transporting letters and other tangible objects: written documents, typically enclosed in envelopes, and also small packages are delivered to destinations around the world. Anything sent through the postal system is called mail or post.In principle, a postal service...

.

An individual or a family moving from one place to another also needs to have its personal effects(goods/things) transported from their place of origin to their new place, and is considered as a first-party logistics provider.

Type of transportation

Typically the first-party logistics providers subcontract their transportation's needs to 2PL

Second-party logistics

A Second-party logistics provider is an asset-based carrier, which actually owns the means of transportation.- Type of 2PL :Second-party logistics providers are:* shipping lines, which own, lease, or charter their ships,...

s and 3PLs, which are companies specialized in transportation. This helps the 1PL to benefit from cheaper transportation prices thanks to the specialization of the 2PLs and 3PLs, and the subsequent economies of scale.

The transportation needed by the 1PL can be anything from transportation by ship, barge, aircraft, train, van or truck.

Terminology

In the freight industry, first-party logistics providers are called differently depending whether they are the sender of the merchandise or the receiver of the merchandise:

Sender = Consignor = Shipper
Receiver = Consignee

In the "PL" terminology, it is important to differentiate the 1PL from the:

2PL
Second-party logistics
A Second-party logistics provider is an asset-based carrier, which actually owns the means of transportation.- Type of 2PL :Second-party logistics providers are:* shipping lines, which own, lease, or charter their ships,...

, which are actual carriers
Common carrier
A common carrier in common-law countries is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport...

,
3PL, which are one stop shops for the 1PL, such as freight forwarder
Freight forwarder
A freight forwarder, forwarder, or forwarding agent is a person or company that organizes shipments for individuals or other companies and may also act as a carrier...

s or courier
Courier
A courier is a person or a company who delivers messages, packages, and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of express services, and swift delivery times, which are optional for...

companies,
4PL, which are consulting firms such as CPCS, SCMO, BMT
BMT Limited
Established in 1985, BMT Group Ltd is an international multi-disciplinary engineering, science and technology consultancy offering a broad range of services, particularly in the defence, energy, environment, maritime transport, marine risk and insurance, shipping and general transportation sectors...

, Deloitte, and Accenture
Accenture
Accenture plc is a global management consulting, technology services and outsourcing company headquartered in Dublin, Republic of Ireland. It is the largest consulting firm in the world and is a Fortune Global 500 company. As of September 2011, the company had more than 236,000 employees across...

.

Type of 1PL

Type of transportation

Terminology

See also