The era of network competition - From 3PL to 4PL
3 important questions on The era of network competition - From 3PL to 4PL
What is a 3PL?
A third-party logistics service provider.
Third-party logistics service providers are companies who provide a range of logistics activities for their clients. For example, operate distribution centres, manage delivery/transport of products or materials.
Third-party logistics service providers are companies who provide a range of logistics activities for their clients. For example, operate distribution centres, manage delivery/transport of products or materials.
What is a 4PL?
A fourth-party logistics service provider.
A 4PL is a supply chain integrator that orchestrates/manages the whole supply chain of a company. For example through a joint venture between a company and its partner(s).
A 4PL is a supply chain integrator that orchestrates/manages the whole supply chain of a company. For example through a joint venture between a company and its partner(s).
Which four key components must 4PL have?
- Systems architecture and integration skills
- A supply chain 'control room'
- Ability to capture and utilise information and knowledge across the network
- Access to 'best of breed' asset providers
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