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First-Party Logistics (1PL)

In: Level Up Your Logistics

Author

Listed:
  • Scott McDonald

    (RMIT University)

  • Minh Duong Kim Ngo

    (RMIT University)

Abstract

This chapter examines First-Party Logistics (1PL), where organizations manage all logistics operations internally using their own assets, personnel, and infrastructure. The fundamental characteristics, organizational structures, and capital investments necessary for successful 1PL implementation are analyzed, alongside a comprehensive assessment of advantages and disadvantages. Through contemporary case studies and practical applications, the chapter demonstrates how 1PL remains viable in specific industries where direct operational control provides strategic advantages. The evolution triggers that signal when organizations should consider transitioning to Second-Party Logistics are identified, with Highland Dairy’s journey illustrating this strategic evolution. The chapter concludes by exploring the paradigm shift from self-service to service–provider relationships, providing a foundation for understanding increasingly sophisticated logistics service provision models in subsequent chapters.

Suggested Citation

  • Scott McDonald & Minh Duong Kim Ngo, 2025. "First-Party Logistics (1PL)," Springer Books, in: Level Up Your Logistics, chapter 0, pages 67-93, Springer.
  • Handle: RePEc:spr:sprchp:978-981-95-0533-3_2
    DOI: 10.1007/978-981-95-0533-3_2
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