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Second-Party Logistics (2PL): The Workhorse

In: Level Up Your Logistics

Author

Listed:
  • Scott McDonald

    (RMIT University)

  • Minh Duong Kim Ngo

    (RMIT University)

Abstract

This chapter examines Second-Party Logistics (2PL) as a pivotal evolution in supply chain management, representing the first step beyond self-performed logistics operations. 2PL providers specialize exclusively in transportation and warehousing services, creating value through deep expertise and economies of scale that individual organizations struggle to achieve internally. The chapter explores the fundamental characteristics of successful 2PL operations, highlighting their substantial investment in specialized physical assets and operational systems designed for logistics excellence. Through a balanced analysis of advantages and challenges, the text illuminates how 2PL partnerships offer significant benefits in specialized expertise and cost efficiency while presenting challenges in service standardization and reduced direct control. A comprehensive framework identifies the key evolution triggers that prompt organizations to transition to 2PL services, alongside the substantial cost reduction opportunities and strategic benefits of refocusing organizational resources on core business activities. The Trans-Cargo Solutions case study illustrates how successful 2PL providers build competitive advantage through strategic specialization, technological innovation, and deep understanding of client needs. By examining 2PL as both an operational model and strategic choice, this chapter provides valuable insights for organizations navigating the increasingly complex logistics landscape.

Suggested Citation

  • Scott McDonald & Minh Duong Kim Ngo, 2025. "Second-Party Logistics (2PL): The Workhorse," Springer Books, in: Level Up Your Logistics, chapter 0, pages 95-119, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-0533-3_3
    DOI: 10.1007/978-981-95-0533-3_3
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