Question

What advice would you give to a company that is looking to replace multiple 3PL relationships with a single 4PL® solution?

Answer 1

4PLs vs 3PLs:

Functionality : 3PL targets a single function, i.e., taking care of the client's logistics operations. 4PL integrates technology, resources and – sometimes – other 3PLs to support the complete supply chain management for the client

.The recent economic downturn has turned traditional supply chain models upside-down.

This impact is likely to continue while the economy revs up again and companies revisit their supply chain strategies.

While customers of logistics services reevaluate their approach to manufacturing and distribution, logistics providers — particularly 3PLs — have the opportunity, and perhaps even face the imperative, to offer more encompassing and specialized services.

Deloitte believes the most successful 3PLs in coming years will be those that make the successful and fastest leap to 4PL capabilities.

Times are tough for many third-party logistics (3PL) outsourcers. Bread-and-butter warehousing, transportation, and fulfillment services are now considered commodities by a growing number of customers. Margins are rapidly shrinking as those customers clamor for ever-lower prices even as they demand better and more consistent quality of service.

When acompany that is looking to replace multiple 3PL relationships with a single 4PL,the chages are given below Ponint by point:-

• Picking area(s) of specialization
• Drilling down deeply into that specialty.
• Possessing true plug-and-play technology.
• Developing a global reach to accommodate shifting market dynamics.
• Demonstrating management competence within the supply chain
• Flexible