Supply Chain 4PL Models

questions answers iconsAn increasingly challenging operating environment coupled with rising logistics cost has contributed to a more complex supply chain. As a result, organizations are continually looking for ways to optimize their overall value chain.

Even though the outsourcing of logistics execution has been established for some time, in the mid-1990s a new type of logistics model emerged whereby organizations outsourced the management activities of their entire logistics operation to a new kind of service provider known as Fourth Party Logistics (4PL). In recent times, the 4PL concept has become a “trendy” keyword often used in supply chain strategies discussed by senior management in several industries.

It is indeed true that organizations which have successfully implemented a 4PL model have benefits from improved service levels, reduced logistics costs and greater flexibility to deal with changing business requirements.

However, 4D’s experience in this field shows the hard reality:
Each 4PL solution is different and needs to be adapted to the organization’s specific requirements through detailed design and investigation to determine the optimum future operating model.

Several 4PL models are possible and can be applicable to both CAPEX and OPEX, but selecting the right model can be challenging and many before have failed.

4D can support clients with:

  • experienced, professional and pragmatic support in identifying the most appropriate 4PL / (Fourth Party Logistics / LMS (Logistics Management Services) / MLP (Main Logistics Provider) models,
  • hands-on support in implementation of the selected 4PL models,
  • review and improvement of the current or future 4PL model.

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