Where to go? #3PL vs #4PL? Is it the same?
Hi, hope Janaury 2011 it has been great for everybody!
I want to share with you some decison making information as to why and where to contract a 3PL vs a 4PL…Here we go!
As you know there are 3PL & 4PL in the #SupplyChain & #Logistics arena. Are they different? or is this another way to call the 3PL’s?
Her are our thoughts based in our 20+ years experince dealing with them:
3PL: Have led the way in the past decade as to manage the «tactics»of the transportation management function (process). 3PL’s whether they move freight by one or many modes, at the end they manage «TASKS» e.g. warehousing, picking & packing, blocking, bracing, etc. they miss the the improvement of the said process.
A Business Process #Outsourcing is on top of the process, it is cross funtional among the interior of the organization. The 3PL today operates in a commodity based environment, just managing ONE or TWO steps of the entire #SupplyChain process, plus it works in a REDUCE THE RATES!! environment. In my view, the 3PL will have to reinvent themselves and their services to add more value.
On the other hand a 4PL is based on technology, people & processes inside the organization…it is a Business Process #Outsourcing totally differentiated from the 3PL. Other feature and main differentiator (and a very important one) of a 4PL vs. a 3PL is that the 4PL is completely neutral from any service provider…it’s only interest is the improvement, value and reengineered process of the overall client’s supply chain (not just the transportation piece) and or the relationship between them and the #SupplyChain service providers (including transportation suppliers).
One great example of a 4PL, is our sister company Harbest Partners (www.harbestp.com) that implements & helps to manage for example: asset and non assest based transportation companies (including 3PL’s), as well as the entire supply chain process inside our customer’s companies.
I feel very grateful, that we are helping our customers to have & develop better & stronger #Supplychains.
We do this through our 3 business units:
Visit us today to learn more about what can we do for you: www.seedslg.com
Have a great new week start!!
Saul Romero Blake