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First-Party Logistics (1PL): Taking the First Step

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) as the foundational model in logistics operations where companies manage their own shipping and transportation internally. It presents the strategic advantages of direct control, including real-time visibility, responsive customer service, and brand consistency, while acknowledging operational challenges such as resource investment and scalability limitations. Through comprehensive frameworks, the chapter provides practical guidance on infrastructure development, organizational structure, financial modeling, systems integration, and performance measurement for successful 1PL implementation. A case study of Nordic Furniture Co. illustrates how a company effectively utilized and eventually evolved beyond the 1PL model to address growth challenges. The chapter concludes with decision frameworks to help organizations determine when to maintain or evolve their logistics operations. It emphasizes that while 1PL represents the most basic form of logistics operations, its successful implementation requires sophisticated planning, careful execution, and continuous monitoring, providing organizations with the knowledge foundation necessary for future logistics development.

Suggested Citation

  • Scott McDonald & Minh Duong Kim Ngo, 2025. "First-Party Logistics (1PL): Taking the First Step," Springer Books, in: Level Up Your Logistics, chapter 0, pages 381-414, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-0533-3_9
    DOI: 10.1007/978-981-95-0533-3_9
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