Allyn International 4PL or 5PL?

Posted on February 10, 2021

At Allyn International we are proud to be a pioneer in 4th Party Logistics (4PL). We started our 4PL services in 1996, and it is our core business. We are also active in Corporate Taxes (North America only), Trade Compliance, and our in-house TMS (Transportation Management System): ALA. 

Therefore, we could be labeled as end to end supply chain management experts that generate savings and optimize our clients' logistics visibility and performance. Quite a label, isn’t it? 

The world is changing. Let me tell you about a very interesting phone call that I had last week. Indeed, a potential client called and asked how our many PIs and KPIs could improve his supply chain. Extending on this subject, I spoke about leveraging technology and big data to create efficiencies. After describing some functionality of ALA (TMS), he concluded that on top of being a real 4PL company, we are also a 5PL. Now that is something new!!

Do you know the definition of a 5PL? 

It is an emerging concept, although there is no clear-cut definition on the internet. We can all agree that through technology and innovative logistics solutions a 5PL provider optimizes the contractor supply chain and is sometimes link to E-commerce. In short, it is an optimizer. 

Optimizing the supply chain of our Client, isn’t that what we are doing daily? I even mentioned this a few paragraphs before, continuous improvement is also one of Allyn’s Leitmotif. 

Looking back at what we did for our Clients in 2020. We put automation in place to reduce resource allocation. We streamlined processes to reduce mistakes and simplify tasks to control customs declaration and invoices. All of these solutions generate time and save money on many levels of the supply chain.  

But wait, there is more! Some 5PL definitions include a concept of managing the supply chain networks from production to delivery. Exactly what we have been doing for many years with integrators (V2V) and document processing. 

So, hooray, we have been upgraded to a 5PL company, but the fact is that we are indeed realizing several hundred millions USD savings for our many Clients each year (4PL) parallel to increasing their performances and visibility through optimization (4PL and 5PL). 

Thanks to ALA being updated regularly Allyn is keeping up with markets expectations. 

Labels are easily put; even 25 years after having developed the 4PL concept -and refining it- we are still on top of our game. I do not have any crystal ball, but I bet that -through our continuous improvement and partnership with Clients- in a few years, should 6PL emerge, we won’t be caught off guard…

Contributor: Alexandre Ricome


About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, log on to www.allynintl.com.