ISBN: 978-93-94174-93-1

Fifth-Party Logistics (5PL): Revolutionizing Supply Chain Management

¹Associate Professor, AMET Business School, AMET University, Chennai, India

²Principal, Rev. Jacob Memorial Christian College, Ambillikai, Ottanchathiram, Dindigul, India

In today’s hyper connected and digital-first world, supply chains have evolved from linear, asset-heavy models to complex, integrated ecosystems that demand agile and technology-driven logistics strategies. Fifth-party logistics (5PL) is an emerging model that enables companies to fully outsource and digitize their supply chain orchestration without owning physical infrastructure. This research paper explores the origins and evolution of 5PL from first-party logistics (1PL) through fourth-party logistics (4PL), defines 5PL in the context of digital transformation, and details the technologies it leverages. The paper further examines the strategic roles 5PL plays in e-commerce and global supply chains, analyzes its benefits and challenges, and presents real-world case studies including Amazon and Alibaba’s Cainiao Network. Finally, it discusses the future trajectory of 5PL amid rising demands for resilience, transparency, and sustainability in global logistics.

*Corresponding author; e-mail: meenakshik@ametuniv.ac.in; binithmuthukrishnan@gmail.com;

Cite this Chapter: Meenatchi Somasundari, K. and Binith Muthukrishnan, K., 2025. Fifth-Party Logistics (5PL): Revolutionizing Supply Chain Management. In: Dr. Lubna Suraiya Dr. P. Kanchana (Eds.). Commerce Reimagined: The Future of Trade and Transactions. Excellent Publishers, India. pp. 85-97. doi: https://doi.org/10.20546/978-93-94174-93-1_6