Third party logistics (3PL) :
3PL has established itself as a significant, growing segment of the
global logistics industry. The 3PL industry includes Logistics Solution Providers (LSPs)
and the shippers whose business processes they support.
Shippers are demanding to LSPs to support their increasingly complex business processes,
to enable them to improve supply chain performance.
Shippers are requiring that LSPs provide:
Enhanced traditional logistics capabilities like enhancing the reliability
Smaller, more frequent shipments
Shipments to a greater number of destinations
Coordinated material flow through crossdock or merge-in-transit operations shippers.
Cost-effective flow of goods and information
Shippers are now asking for "pipeline visibility" of information visibility of the status of
goods in the pipeline from suppliers through intermediary companies and organizations
to a factory, retailer, or customer
Many LSPs are working to position themselves as lead logistics providers who
have the relationship and operations management skills, as well as the ICT capabilities,
to oversee the implementation and execution of complex supply chain solutions.
Coordinating traditional and value-added activities performed by several LSPs
who either have the required functional expertise (e.g., warehousing or some form of transportation)
or geographic presence
Naturally, as capabilities improve, shippers are moving towards more dynamic business structures.
Fourth Party Logistics Provider (4PL) :
4PL providers organize and align with other providers to
work with a customer to deliver and manage a comprehensive supply chain solution,
ranging from innovation through execution. A 4PL provider is a combination of a Solutions Provider
and a Supply Chain Innovator.
Logistic Solution Providers (LSP's) have stepped in with a variety of services and strategies
to help companies improve delivery services to their customers.
It's a growing, dynamic market, but the wide range of providers from different market segments
may point to future merger activity among the numerous players..
This is where I can help.
