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Why Choose a 4PL?
As organizations continue transcending international frontiers, the need for building synergies and maximizing results in Supply Chain Management continues to make the case for 4th Party Logistics Providers (4PLs).
Officially invented by Anderson Consulting (now Accenture) in 1996, a 4PL is defined as a supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization with those of complementary service providers to deliver a comprehensive supply chain solution. With global operations becoming more complex, companies are faced with more and more challenges in their supply chain management; here is where a 4PL could not only be the solution to existing problems, but also the way to access untapped opportunities.
Outsourcing to a 4PL allows organizations to focus on their core competencies, provide a differential level of customer service, and take advantage of greater operational flexibility. Some areas of opportunities for a 4PL:
Simply delivering. Delivering the right product in the right quantity and the right condition with the right documentation to the right place at the right time.
Control. Oversight and management in increasing freight rates, technology upgrades, regulatory demands, global sourcing, and customers.
Continuous improvement. Supply chains must be reviewed periodically to identify market changes, sourcing opportunities, safety concerns, etc.
4PLs can support several activities within a supply chain, depending where an organization needs the most help or can reap maximum benefits, e.g.. Implementing a 4PL freight management process with Allyn Logistics brings access to a uniform process via Allyn’s transportation management system, a global footprint, and several years of expertise tailored to local markets, products and organizations. Some of the most common areas for companies to focus on when working with a 4PL:
Cost Reduction: If you have a specific problem that needs to be addressed or wish to experience a substantial growth in your business, making the transition to outsourcing your supply chain will ultimately benefit your bottom line through sourcing and negotiation.
Leverage of Resources: Outsourcing leads to more efficient processes. Allyn conducts logistics assessments and audits on behalf of its clients and supplies them with recommendations and guidelines related to their supply chain management and determines areas of opportunity. Through a 4PL like Allyn, organizations gain access to resources and knowledge that would be cost prohibitive to acquire in-house.
Risk management: A 4PL provider can focus on overseeing a specific scope of service and close the gaps. Allyn is not only responsible for ensuring on-time deliveries and reducing risk of delays but we are also responsible for diagnosing areas of opportunity and consulting with customers to execute on these opportunities. Allyn’s Logistic Specialists consistently seek to improve and close gaps while strengthening oversight to prevent problems.
It is important to note: successes in implementing a 4PL based process relies heavily on the relationship between the organization and the 4PL provider. A 4PL service provider has the objectivity, expertise, and reach to become your company’s logistics arm. If your organization has not yet considered working with a 4PL, contact Allyn Logistics to take a look at your options; perhaps a 4PL is the answer to your supply chain challenges.
As a 4PL provider, Allyn Logistics provides a full range of services from consulting to freight management to contract negotiations and much more services. Please send us a note; we will be glad to collaborate with you! (AllynLogistics4PL@allynintl.com )
Contributor: Rosa Mateu, Allyn International Americas Logistics, Florida
Supply Chain Council. Supply Chain Council, Inc. (SCC), n.d. Web. 11 July 2013.
"4th Party Logistics (4PL) Concept." Allyn International Services Inc. Allyn International Services Inc, n.d. Web. 13 July 2013.