Fang Logistics is defined as "supply chain integrator, which mobilizes and manages the resources, capabilities and technologies of itself and complementary service providers and provides integrated supply chain solutions". Although the scale of this service is still small, it will be a fast-growing part of the highly competitive logistics market in China.
Third-party logistics refers to a logistics management mode in which production and operation enterprises entrust their logistics activities to professional logistics service enterprises through contracts in order to concentrate their main business, and at the same time keep close contact with logistics enterprises through information systems, thus controlling the whole process of logistics management.
The fourth party logistics is defined as "a supply chain integrator, which mobilizes and manages the resources, capabilities and technologies of itself and complementary service providers to provide an integrated supply chain solution". It can provide comprehensive supply chain solutions through the influence of the whole supply chain, and it can also bring greater value to its customers. We can integrate social resources on the basis of solving enterprise logistics, and solve the problems of fully enjoying logistics information and making full use of social logistics resources.
Compared with "third party logistics", "fourth party logistics" has more services and wider coverage, which requires companies engaged in freight logistics services to explore new service areas and provide more value-added services. The biggest advantage of "fourth party logistics" is that it can ensure that products are delivered to demanders "faster, better and cheaper". In today's economic form, shippers/shippers are increasingly pursuing the global integration of supply chain to meet the needs of transnational operations. Multinational companies must rely more on logistics outsourcing because they want to focus on their core business. For this reason, they need external forces not only at the operational level, but also at the strategic level to get "faster, better and cheaper" logistics services day and night. According to experts' analysis, the fourth party logistics is more profitable than the third party logistics because they have professional consulting services. Although the scale of this service is still small, it will be a fast-growing part of the highly competitive logistics market in China.