Decision-making for 4PL Solutions

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Decision-making for 4PL Solutions
Faisal Khan
How does an end customer decide if they need 3pl or 4pl supply chain solutions?

3PL or 4PL?
Quinten Evans, Member
In reality most 3PL's incorporate a 4PL outlook in some of their core compentencies, the logistics field incorporates so many different types of forms, from international customs clearance and delivery, to domestics deliveries, storage distribution and now even mailing houses. Only the companies big enough to cover international deliveries from their own fleet might be considered to be a true 3PL, but even in countries they dont have a presence in, they will no doubt have a local supplier to complete the delivery transaction, which could place them technically as a 4PL.
If you are investigating if you need a logistics provider you need to first realise the service you need, apart from delivery does it include storage or fulfilment. Do you require delivery timescales. Once you know your requirements let the providers run after you.

3PL or 4PL
Roland Spijker
I agree with Quinten Evans if you consider 4PL literally as a 4th party in the logistic chain. If you want to keep control over this process you should use a contract clause where sub-contracting has to be authorised by you, the shipper. If you define a 4PL as mentioned under "difference between 3PL and 4PL", then you are basically need a lot of trust in your supplier. Actually you are outsourcing part of your procurement and strategy then and the big question is how are you going to control that?



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