x Are you interested in the difference between 3PL vs 4PL in the Logistics supply chain?
x You don't understand exactly what the definition of a 4PL strategy is?
What is the role? x Do you need a quick, detailed update of the information specified in the 4PL model?
The core issues in the 4PL strategy that your business is interested in raised above will be by Proship.vn to help relevant subjects gain more knowledge, understanding as well as solid experience in the process of using the 4PL strategy. Using Logistics Services Wednesday. Besides, you also clearly see the strengths as well as how to effectively build and expand 4PL at the present time.
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What is a 4PL strategy?
What is 4PL ? 4PL (Fourth Logistics Service Provider or Distribution Chain Logistics, or Main Logistics Provider - LPL) is a person who unifies and connects its resources, potential and technical facilities with other organizations. other organizations to design, build and operate Logistics chain solutions. 4PL is the management and implementation of complex Logistics activities such as resource management, Control Coordination Center, architectural functions & integration of Logistics activities.
4PL is related to 3PL, developed on the 3PL platform but includes a broader field of activities such as 3PL activities, Information Technology Services and Business Process Management. 4PL is considered a single point of contact, a place to manage and synthesize all resources and monitor 3PL functions throughout the distribution chain to reach global markets and strategic advantages. and lasting relationships.
Information specified in the 4PL strategy
What is the 4PL strategy, you have clearly understood and the regulations related to 4PL also need to be specifically pointed out such as:
In the mid-1990s, Fourth Party Logistics Service Providers emerged to ensure that all elements of the supply chain work toward the same goals. A Fourth Party Logistics Service Provider is a company that does not own assets. They work with multiple resources, including 3PLs, to manage the planning and technology of their customers' logistics systems. 4PL is a Logistics Management Service that acts as a Coordinator for various services including design, construction and implementation of supply chain solutions.
4PL differs from 3PL in some ways
- A 4PL organization acts as a link between customers and multiple Logistics providers
- The organization of this Business is usually a separate entity formed by a joint venture or long-term contract between the customer and one or more partners.
- A large 3PL organization can form a 4PL organization within its existing structure
- Under ideal conditions, all aspects of a customer's supply chain are managed by a 4PL organization.
For 3PL & 4PL, both are involved in supply chain activities from input materials to output products, transportation to recipients, while E-Logistics and Logistics are based on e-commerce. (e-commerce) are the most prominent examples for 5PL .
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In 4PL, the Company or the customer's authorized representative organization with a management role, focuses on improving process efficiency and implementing the entire supply chain and Logistics. Therefore, 4PL is increasingly becoming one of the key positions in the enterprise's business activities.
4PL = 3PL + Information Technology Services + Business Process Management.
The goal of a 4PL is to provide value across the entire supply chain, not just one segment in the chain. 4PL services are determined by customer needs. And 4PL businesses that want to be successful need to have a truly reasonable strategy, including:
- Information Technology: 4PL manages the full integration and support of all systems in the supply chain
- Leadership: 4PL manages projects, including services, systems & information
- Management capabilities: 4PL manages multiple 3PLs as well as daily operations
- Asset management: 4PL manages transportation, warehouse, contract manufacturing, packaging and purchasing services.
Why should we care about the difference between 3PL & 4PL models?
Businesses need to pay attention to the difference between 3PL vs 4PL, why? Hiring a 3PL Company may benefit some links in the supply chain, but ultimately, this tactical activity cannot be the core value of the customer and be managed by outsourcing. outside to minimize costs.
But the management of those individual Logistics activities aims to reduce costs but actually increases costs, or reduces service quality somewhere in the supply chain. Managing all the complex activities in the supply chain is the core value that 4PL Companies can bring to their customers. The values that 4PL Companies bring have an impact across the entire supply chain system, not just individual cost-cutting activities.
Through sharing useful information above, individuals or large enterprises or single businesses operating in the field of Logistics can understand what the definition of 4PL is, how 4PL strategy plays an important role in logistics and entire supply chain. Through this you can easily compare the difference between 3PL vs 4PL to draw many experiences and lessons for yourself. For more details about transportation services, package logistics, related logistics supply, contact hotline 0909 344 247 to receive quotes, consulting and support from Proship.
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