If you have spent any time in the freight industry you have most likely heard the words “logistics” and “party” thrown around with various numbers attached. They represent the various layers moving outwards from the original source of the freight. Our goal with this blog is to start with some simple explanations and end at a complex new definition of where we fit into the world — our own logistics party.
It All Starts With 1
- First Party Logistics or a 1PL is the guy (or gal) with the freight, cargo, marbles, biscuits – they are number 1 for a reason because without a product to move to their customers they really don’t have to worry about logistics at all.
- Second Party Logistics or a 2PL is equally as important as they are the ones with the trucks, boats, planes, rail cars, scooters – anything that moves the freight to another destination.
- Third Party Logistics or a 3PL does not usually own any of the above mentioned assets but instead corrals together a bunch of 2PL’s to offer a wide variety of services to a 1PL. They are considered experts at the coordination of multiple resources to add value to a 1PL’s shipping.
Homeless, Party of 1
So where does Pivot fit into this logistics party? While we are proud of our knowledge of formulas and operating ratios, we don’t have any assets that move cargo so we can scratch out 2PL. We don’t have any physical products beyond our nerf guns and calculators, so there goes 1PL. A 3PL coordinates shipping and in some cases takes control of the actual freight. We work with the 1PL connecting them directly to the 2PL based on both of their specific needs. So with the logic above we fall somewhere between a 1PL and a 2PL which now leaves us out in the cold searching for answers, a sandwich, and a quest to find an entirely new number to attach to our PL.
Time to Geek Out
In mathematics, two quantities are in the golden ratio if their ratio is the same as the ratio of their sum to the larger of the two quantities. The value that this represents is 1.6180339887 causing a golden spiral to expand outwards in perfect harmonic proportion.
It has fascinated and kept some of the greatest mathematical minds of all ages busy for endless hours. Additionally many biologists, artists, musicians, historians and architects have grabbed onto this magical number as inspiration in their own work.
We’re a Real Boy!
So with one of the coolest numbers in history, we now would like to be known as the first ever 1.6PL. Here is a definition for a 1.6PL which we just made up since it didn’t previously exist:
1.6 Party Logistics or 1.6PL provides consulting, technology and rates to a 1PL putting them directly in touch with a 2PL. They must always maintain a perfect balance serving as the catalyst for profitability for their customers, carriers and themselves-which in turn leads all 3 to continuously grow and improve together.
In the words of someone famous from the not so distant present, “We’ll ride the spiral to the end and may just go where no one’s been. Spiral out. Keep going.”
Dan Bebout | CEO