The concept of a 4PL Logistics provider is an integrator that accumulates resources, capabilities and technologies to run complete supply chain solutions.
Main Difference between 3PLs and 4PLs is that 3PL companies targets a single function, whereas the 4PL companies manage the entire process. Third Party Logistics Companies are sometimes managed by Fourth Party Logistics Companies.
Functions provided by a 4PL Logistics company
A 4PL company takes over the logistics section of a business. This could be the entire process, or a side business that’s imperative to have as part of the main business.
4PL companies have a mix of business models within its structure ranging from fourth party logistics solutions, offering end to end supply chain solutions, to third party logistical service . This blend of 4PL and 3PL service offerings allows I 4pl providers to offer the market a unique service offering that takes full advantage of supply and demand forces within the global logistics platform without sacrificing service reliability, price and product security.
The transformation process to a 4PL Logistics Solutions Provider has been embraced a few years back and he results are evident. The businesses offers real time information solutions placing our customers, suppliers and staff in an informed position with regards to contract performance, deadlines and production planning.
In a nutshell, if you are looking for a company to hand all your logistics needs from door to door, a 3pl solutions provider is your answer . If you are looking to outsource your logistics department in order to cut on costs while increasing productivity and effectiveness, a 4th party logistics provider is specialized in offering the whole package and becoming your supply chain partner.