A second-party logistics provider handles the transportation component of the supply chain and is responsible for getting a company’s goods from A to B. 2PLs lease or charter their own transportation – such as ships, trucks, or planes – to companies, and they can also be contracted to transport freight. A logistics provider that only transports goods over a certain part of the supply chain could also be classified as a 2PL.
2PL example
Any freight forwarding company such as World Cargo Transport Inc. headquartered in Woodbridge, New Jersey, is a provider of logistics services to and from almost anywhere in the world.
Pros of 2PL
Cons of 2PL
2PLs are suited to companies that want a segment of their supply chain managed externally (such as transportation from a warehouse to a dock) but would prefer to manage other parts of the supply chain internally.
