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chain at a strategic level and focuses on providing logistic solutions throughout<br />

the entire supply chain 25 . There are 5PL model interpretations where it is emphasised<br />

that enterprises operating in the 5PL model originate from lower logistics<br />

levels and have been created to serve the e-business market. 5PL providers<br />

are considered to be 3PL and 4PL companies that manage all links in the supply<br />

chain for e-commerce. 5PL organizations are almost fully virtual, as having no<br />

typical assets, they focus on acquiring the necessary skills to manage and coordinate<br />

operations of other providers of services through dedicated information solutions,<br />

and they are also associated with the demand and supply sides through<br />

electronic logistic services markets 26 .<br />

The major tasks of 5PL companies include mapping and reengineering of<br />

the supply chain, the 4PL functions (integration and control of transport, handling,<br />

warehousing, etc.) and providing integrated information systems to ensure<br />

real-time visibility and control of the supply chain. Another task of 5PL is<br />

also to adapt specific supply chains to the operation of a common network managed<br />

by one organisation at the strategic level. The network participants are able<br />

to derive greater benefits from the visibility of flows in real time and the economies<br />

of scale, achieving better efficiency and lower costs, which they would<br />

never achieve using 3PL services 27 .<br />

5PL is not a physical organisation but a system that provides information to<br />

the chain participants under its control. Then, individual participants manage<br />

various supply chains in the network on the basis of the information received in<br />

real time and adapted to such logistic services as transport, forwarding, warehousing,<br />

etc. Development and coordination of specific supply chains and their<br />

transformation into supply networks by 5PL involves formation of virtual corporations.<br />

Through new business models, companies generate greater possibilities for<br />

integration of supply and cooperation chain, which translates into producing<br />

new values for customers and business partners. Network organisations such as<br />

Virtual Network Consortia (VNC) and joint ventures increase the width and<br />

depth of their supply chains and significantly improve the industry’s position in<br />

international markets. Global competition requires more and more joint initiatives<br />

and cooperation for innovations, both at the industry level and the supply<br />

chain level. The tendency to combine the logistic service of flow of goods with<br />

the management of information and knowledge will become more and more<br />

important in the future.<br />

25 P. Hosie, The Evolution of the 5PL. http://log.ae/2008/04/01/the-evolution-of-the-5pl/ of 27.10.2008.<br />

26 J. Crespo De Carvalho, J. Menezes, E. Dias, Logistic Providers: Portuguese and European Perspectives.<br />

Fourth International Meeting for Research in Logistics 2002. http://airllogistique.org/fr/files/?view=168<br />

of 27.10.2008.<br />

27 What is Fifth Party Logistics (5PL)? 5PL Supply Chain Engineering. http://5pl-uk.com/what.html of<br />

27.10.2008.<br />

130

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