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                                    Logistics operation is evolving with increased network coordination and system integrationWhile looking at the development path of the logistics industry, we can see that logistics service providers are constantly increasing their levels of system integration, i.e. the integration of different logistics interfaces such as warehouses, delivery trucks and IT systems, and network coordination, i.e. the coordination of work along the network of supply chains. The logistics business originated from first-party logistics (1PL). In the 1PL era, the consignors, usually the manufacturers, managed the product delivery by themselves. Later the consignors started contracting a third party to deliver for them, leveraging the third party’s specialist knowledge, and this marks the conception of 2PL. 3PL logistics operators started providing value-adding services besides just physical delivery. These services may include quality checking, packaging, labelling, and temperature-controlled warehousing, etc. Examples of companies providing 3PL services are SF Express, Kerry Logistics, DHL, UPS and FedEx, and so on. 4PL providers started integrating and managing the entire supply chain, which helps improve their clients’ operation efficiency and flexibility. Examples include Li & Fung, Deloitte, Accenture, etc.3According to DHL Trend Research, the promising development of the latest technologies such as 5G communication, the Internet of Things (IoT), Artificial Intelligence, and Big Data analytics will help logistics operators achieve unprecedented productivity and service quality,4 opening the 5PL era in which companies start to plan, organise and implement the most appropriate logistics technologies and solutions.3 BCR. (2018). 1PL to 5PL: Differences Between 3PL Provider and Others. 4 DHL Trend Research. (2019). Logistics Trend Radar.15
                                
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