First-Party Logistics (1PL)

Scott McDonald () and Minh Duong Kim Ngo ()
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Scott McDonald: RMIT University
Minh Duong Kim Ngo: RMIT University

Chapter Chapter 2 in Level Up Your Logistics, 2025, pp 67-93 from Springer

Abstract: 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.

Keywords: First-Party Logistics (1PL); In-house logistics; Asset management; Operational control; Logistics evolution (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-95-0533-3_2

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DOI: 10.1007/978-981-95-0533-3_2

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