fifthparty

Fifthparty is a term used to describe an entity or role that sits beyond the traditional four-party model of business relationships in supply chains and related fields. In the classic model, the first party is the company itself, the second party is the customer, the third party is an external provider, and the fourth party is an orchestrator or integrator that coordinates multiple providers. A fifth party typically refers to a platform, marketplace, or governance layer that coordinates and optimizes the networks of fourth parties on behalf of one or more clients, often using digital tools and data analytics to provide end-to-end visibility.

Fifth party logistics (5PL) is a related concept in logistics and supply-chain management where a single digital platform coordinates the activities of multiple providers, vendors, and carriers across a network. The fifth party acts as an orchestrator or decision-maker, rather than a single carrier, and focuses on end-to-end optimization, procurement, and information flow.

In risk management and cybersecurity, fifth-party risk describes the risk arising from vendors of vendors or from the broader ecosystem that supports a primary supplier. This extends beyond traditional third-party risk to include subcontractors, affiliates, and other components in the supply network.

Because there is no universally standardized definition, the term fifthparty is used inconsistently across industries. It commonly appears in marketing materials and some white papers to convey platform-led coordination, but it can cause ambiguity with respect to responsibilities, liability, and risk management.