Transport/Logistics

Logistics service provider (LSP)

A logistics service provider (LSP) is a company that provides logistics services that enable the transport, storage, or handling of goods. There are different types of LSPs, ranging from LSPs that manage a single activity (e.g. transporting goods from warehouse to retailers) to full-service LSPs that manage the entire logistics process for their clients (also called 4PL).

What are the different types of logistics service providers (LSPs)?

LSPs come in all shapes and sizes, but the main types are:

  • 1PL (First-party logistics): The shipper handles its own logistics using in-house resources such as its own vehicle fleet, drivers, and warehouses.
  • 2PL (Second-party logistics): A transport provider (e.g. a carrier) that performs a specific logistics task, like moving goods from A to B.
  • 3PL (Third-party logistics): A company that manages multiple logistics functions, such as transport, warehousing, and fulfillment, on behalf of their clients.
  • 4PL (Fourth-party logistics): A company that manages all logistics activities for their clients, including coordinating multiple 3PLs and service providers.
  • Specialized LSPs: LSPs that focus on niche areas such as last mile delivery, e-fulfillment, cold chain logistics, or project logistics.

How can LSPs be more sustainable?

LSPs can play a key role in reducing transport-related emissions. For example, by optimizing warehouse locations, consolidating shipments, improving vehicle utilization, and adopting electric or alternative-fuel vehicles. Many LSPs use tools like BigMile to track, analyze, and lower emissions across the supply chain.

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Logistics service provider (LSP)

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