x Import-Export and Logistics Enterprises do not understand what 3PL is and what 4PL is?
x Does your business need to find out the similarities and differences between 3PL & 4PL?
x You want to know which form to choose between 3PL & 4PL to save time, cost, and effort for businesses?
Proship shares with you concepts related to the Logistics supply chain of what 3PL is, what 4PL is, and also helps your business see the similarities and differences to gain more understanding and experience in implementing cross-border logistics. throughout the process of Logistics operations from AZ. In addition, if you are looking for a professional, full-package Logistics Service provider, Proship.vn is one of the most reliable addresses today.
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What is 3PL?
What is 3PL ? 3PL (Third Party Logistics Service Provider or Contract Logistics) will manage and perform Logistics Services for each department on behalf of the shipper such as: performing export procedures on behalf of the shipper, providing Issue delivery-transportation documents and domestic transportation or replace the importer to carry out customs clearance procedures for goods and bring goods to the specified destination,...
3PL includes many different services, closely combined with the rotation, storage of goods, information processing, etc., integrating into the customer's supply chain. 3PL are activities performed by a company providing Logistics Services, on behalf of customers based on contracts with a minimum validity of 1 year or unusual requests.
What is 4PL?
What is 4PL ? 4PL (Wednesday Logistics Service Provider or Distribution Chain Logistics or LPL) is a person who consolidates and connects its resources, potential and technical facilities with organizations. others to design, build and operate solutions in the Logistics chain. 4PL is the management and implementation of complex Logistics activities such as resource management, control coordination centers, architectural functions and integration of Logistics activities.
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4PL is related to 3PL and is developed on the 3PL platform, but the field of operation of this form is broader, including 3PL activities, Information Technology Services and business process management. joint. 4PL is considered a single point of contact, the place to manage and synthesize all resources & monitor 3PL functions throughout the distribution chain to reach global markets and strategic advantages. and lasting relationships.
Comparing 3PL and 4PL, what are the similarities and differences?
Comparing 3PL and 4PL there are similarities and differences, specifically as follows:
- Similar: Both forms of 3PL & 4PL contribute to supply chain operations from input materials to output goods and perform necessary transportation activities.
- Differences between 3PL & 4PL:
For 3PL
The Service Company provides a multi-dimensional Logistics system that helps support the flow of materials and equipment from suppliers to manufacturing plants, bringing finished products to distribution channels and places of consumption. But it cannot be said that 3PL brings core value to the entire supply chain of customers because it is simply a service hired to cut costs and budgets.
3PL only contributes tactics and value to one link in the supply chain and is responsible for completing those tactics. Therefore, it is called “Service Level Agreement”. 3PL service providers only provide tactical services or a little more (usually at certain links in the supply chain).
For 4PL
4PL is different from 3PL because it not only affects the Logistics system but also the entire supply chain of the Customer Company. Companies providing 4PL Services are usually a joint venture and have long-term contracts with customers. Those companies act as "bridges" between customers and suppliers and distributors to help the supply chain develop in accordance with the common vision of the customer company.
In other words, every aspect of a customer's supply chain is managed by a 4PL. Specifically, 4PL undertakes strategic and in-depth management activities, focusing on improving process efficiency and operating the entire Logistics & supply chain system. Not only for the customer's supply chain, but 4Pl also affects the development of that supply chain, which must be consistent with the Company's overall vision.
Notes you need to know about 3PL & 4PL forms
After learning what 3PL is, what 4PL is, comparing the similarities and differences between 3PL and 4PL, your business should note that hiring a 3PL company can bring benefits to a number of links in the chain. supply chain, but it is only managed by outsourcing to ensure the lowest costs. The management of individual Logistics activities aims to minimize 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. And the value that 4PL Companies bring has an impact across the supply chain system, not just individual cost-cutting activities.
With available knowledge and experience in the field and activities of Logistics supply chain, Proship has clearly pointed out the concepts related to what 3PL is, what 4PL is and at the same time highlighted some similarities and differences between the two. form. When your business needs to clarify each issue related to 3PL or 4PL, which one should choose optimally to save costs , you can refer to... Contact us via hotline 0909 344 247 when you need Logistics Services Best price package.
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