Traditionally, suppliers
and distributors used to manage the above functions all
by themselves. However, with the growth of e-commerce and
e-business, though the process and transaction time have
been considerably streamlined, customers demand an ever-more
sophisticated approach. Today, speed, information, and convenience
have become the order of the day. This is the necessity
that has given birth to the concept of fourth party logistics
(4PL).
What is 4PL?
Fourth Party Logistics is the complete holistic logistics
solution that Third Party Logistics (3PL) was supposed to
be. A 4 PL logistics provider is one who can bring about
the confluence of its technology, resources and skills with
that of another provider to deliver a global, seamless logistics
solution. 4 PL providers have a network that transcends
borders and industries. They also provide consulting services
to clients when required.
How is it different
from 3PL?
Third party logistics providers are more focused around
asset management. Although they were touted to be the last
word in logistics management, 3PL providers have become
too focused on warehousing and transportation services and
have very few value-added services or management expertise
thus giving rise to the new paradigm of 4PL providers.
