What is 5PL? Learn in detail the regulations in the 5PL strategy

* In addition to the 1PL, 2PL, 3PL, 4PL models, what is your business especially interested in 5PL?
* Do you need to know details about the regulations in the 5PL e-commerce strategy?
* Do you want to update information about top quality package logistics services?

Faced with issues that businesses are particularly interested in learning about and want to clarify related information, Proship - an effective quality Logistics solution provider will help you have the most accurate and overview of your strategy. 5PL strategy. At the same time, we also point out our own strengths in the process of applying and implementing Logistics Services on the strong foundation of E-commerce (e-commerce)...

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What's different about Proship's Logistics service?

PROSHIP is currently the leading company specializing in providing professional full package Logistics Services. We specialize in providing comprehensive supply chain solutions for Logistics partners, including: Port services, Transport services, Customs procedures, transshipment, freight, bonded and non-bonded warehouses and other projects.

Proship.vn's mission is to effectively connect businesses in Vietnam with the global network. We wish to build a professional import and export community through "import entrustment" activities. With the purpose of minimizing risks for importers and exporters and improving the competitiveness of our country's importers and exporters in the international market.

Proship aims to become a leading "Freight Transport Company, Logistics Solution Provider" in the next few years. To achieve this, Proship is making continuous efforts to improve employee quality, improve and upgrade equipment, transportation, etc.

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What is 5PL? Learn in detail the regulations in the 5PL strategy
Proship helps optimize Logistics costs effectively for businesses in Vietnam.

Proship provides customers with different forms of transportation

  • Receive goods at the warehouse and deliver them to the customer's warehouse
  • Receive goods at the factory and deliver to the customer's warehouse
  • Receive goods at the factory and deliver to your door upon request
  • Receive goods at the customer's warehouse and deliver to your door.

If you want to optimize all Logistics activities, your business only needs to choose a reputable and quality transport unit to cooperate with peace of mind. Proship is proud to be the leading unit using 4.0 technology in the transportation process in Vietnam. With Transport Service 4.0 Proship is known as "Your private transport unit". When needed, you can learn and use our Services through the website https://proship.vn .

What is 5PL? What is the role?

What is 5PL??

5PL stands for "Fifth Party Logistics" and is the most popular and developed Logistics Service for E-commerce. The 5PL strategy manages and coordinates the activities of 3PL and 4PL through information solutions related to Supply & Demand in the E-commerce delivery service market.

What is 5PL? Learn in detail the regulations in the 5PL strategy
5PL is a quite popular and developed Logistics Service today for the e-commerce sector.

The role of 5PL

The characteristics of 5PL are the systems (Order Management System (OMS), Warehouse Management System (WMS) and Transportation Management System (TMS). Basically, all three systems are the same. are closely related to each other in a unified system and information technology. As for businesses working at the 5PL level, currently in Vietnam there is no business that has reached the 5PL standard level, including foreign businesses. outside.

Learn the regulations in the 5PL strategy

Unlike the 1PL,  2PL,  3PL and 4PL , 5PL is an almost completely new service, recently known and associated with the great progress of e-commerce. Therefore, it is related to the distribution chain on this platform and is a service that is increasingly having great influence.

Currently, the relatively high level of Logistics costs has been creating an invisible pressure for businesses in Vietnam. The solution to this problem is to learn and apply advanced logistics models in developed countries such as the US, China, and the EU. In particular, the 5PL Logistics model is a "salvage" for the current Logistics cost burden because the Logistics industry in Vietnam is facing many obstacles that are difficult to improve in a short time.

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Along with supply chain integration and management, 5PL organizations offer a number of other beneficial services, such as call facilities or online payments to customers. With the example of a vegetable farm and a 5PL Service Company, the farm will be joined as a member of the digital supply network, using e-commerce for sales, and be provided with a lot of information from the market situation. market to farming techniques, demand forecasting; can sell to individuals,... enjoy the fruits of artificial intelligence,...

The 5PL strategy includes 3 key systems

  • Order management system (OMS)
  • Warehouse management system (WMS)
  • Transportation management system (TMS).
What is 5PL? Learn in detail the regulations in the 5PL strategy
The 5PL strategy is a new service with its own regulations on the e-commerce development platform.

5PL is a form based on an E-commerce platform with a more comprehensive overall service than the remaining forms (1PL, 2PL, 3PL, 4PL). 5PL is also a useful solution for Shops, Small and Medium Enterprises, they can easily integrate 5PL's management system/application when operating the system professionally.

Benefits of the 5PL model in the context of booming e-commerce

The 5PL model is effective in managing the supply chain for SMEs by optimizing time, costs and minimizing inventory requirements, reducing cost pressure and competition. This model was born from the requirements of e-commerce 4.0, when online shopping has been growing strongly.

In fact, Chinese e-commerce platforms, specifically the international wholesale platform Aliexpress, have long applied the 5PL model. The reason Chinese sellers have many price advantages compared to Vietnamese sellers is because they benefit from the Dropshipping model in coordination with Aliexpress's 5PL Service and ePacket. International shipping costs on Aliexpress are often cheaper than domestic shipping due to the advantages of ePacket. If you order a fast charging battery product delivered domestically in China, it will cost $3.04 from ePacket, but this fee is very low or free if shipped to Vietnam or other countries. Shipping costs from China to the US cost only $0.5/order.

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Meanwhile, the service fee for international shipping in Vietnam (from China - Vietnam) is around 50,000 - 60,000 VND/order under 1kg. This fee does not include costs for order processing, classification, and packaging according to the seller's request.

What is 5PL? Learn in detail the regulations in the 5PL strategy
The developed 5PL strategy will effectively support e-commerce activities in Vietnam today.

Therefore, Chinese sellers are under less pressure on Logistics costs when selling across borders as analyzed above. And vice versa, Vietnamese sellers have been bearing many costs when doing business domestically and internationally. Increasing cost pressure forces Vietnamese sellers to deal with it in many different ways, but it creates many difficult barriers such as:

  • Importing large quantities to save on import costs is very limited. If the goods cannot be sold, many other costs will arise such as storage, management, etc., not to mention goods lost or damaged during the delivery period. awaiting sale
  • Unofficial imports may face risks such as customs holding goods, market management detaining goods due to lack of import documents, etc.

Therefore, the most optimal solution for Vietnamese sellers is to apply the 5PL Service model to solve the current problem, contributing to reducing cost pressure and competitiveness.

Before sharing about what the 5PL strategy is in Logistics activities above, we hope to help businesses have an overview of the model linked to this popular e-commerce platform. Along with the concept of 5PL, its regulations are also mentioned for subjects to clearly understand. So if you need to hire professional storage, transportation, logistics, import-export, etc. services, contact Hotline 0909 344 247  to receive support and quotes from Proship.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

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