Criteria used to select a logistics service provider
Detailed Company information – ie. Financials, Employee Information, Customer Base, Training •
Functionality – Shipping & Receiving, Warehousing, Quality Control, Location Mapping, Value Added Services, describes the functions and services the 4PL has to offer •
General technology requirements, current systems used by 4PL, system flexibility, integration with clients current system, user interface, Security, Configuration, Reporting Capabilities, International/Localization capabilities, upgrading capabilities •
capabilities to support both manufacturing and finished goods distribution; global capabilities; resources •
ability to manage multiple service providers, transfer current operations to 4PL managed •
capabilities in the following fields: logistics, IT systems, Information management, SCM, global coordination
3PL vs 4PL
4PL –supply chain coordinator - assembles and manages the resources, capabilities, and technology of its own organization with complementary service providers to deliver a comprehensive supply chain solution. b.
4PL – adds value through the ability to have an impact on the entire supply chain higher value added services. . c.
Most 3PLs are asset based (trucks, warehouses) and 4PLs are non-asset focused and information based. 4PLs may utilitize 3PLs depending on the service provided. 4PL act as a focal point for several supply chains, can pool the logistical means and offer customized solutions to its clients, which increases it performance thanks to sharing the risks, gains, and losses 4PL arranges for the means to execute it using either its own or contract warehouse and transport resources outsourcing requires a centralized IOS that provides control over all potential activities related to the physical acquisition, storage and
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