Advantages and disadvantages of third-party logistics and fourth-party logistics

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As a new logistics model, "third party logistics" is active in the circulation field, and its function of saving logistics costs and improving logistics efficiency has been recognized by many enterprises. With the improvement of enterprise requirements, "third party logistics" began to be unable to integrate the logistics resources of the whole society to solve the logistics bottleneck and maximize efficiency; Although the third-party logistics is partially efficient, the third-party logistics enterprises are scattered in a region and a country as a whole, and it is difficult to achieve the optimal results and solve the logistics bottleneck in economic development, especially the new logistics bottleneck in e-commerce. In addition, the development of logistics industry needs the promotion of technical experts and management consulting experts, while the third-party logistics just lacks the support of high-tech and high-quality talents.

It has been suggested that the relationship between customers and third-party logistics must be close and standardized. So "4PL (Fourth Party Logistics)" came into being.

The concept of "fourth party logistics" was first put forward by Accenture, a famous management consulting company, and registered as a proprietary service trademark, which is defined as "a supply chain integrator who deploys and manages the resources, capabilities and technologies of the organization itself and complementary service providers and provides comprehensive supply chain solutions". Although some people in the industry suspect that consulting companies are suspected of monopolizing industries, it is generally recognized in the industry that the increasingly complex logistics management and the explosive development of information technology really need a "super manager" to manage and coordinate in the process of supply chain management. Moreover, academic circles, management consulting companies, third-party logistics companies and end customers all think that the demand for such entities is growing. Its main function should be to monitor the supply chain of manufacturing enterprises or distribution enterprises and act as the only "contact person" between customers and their logistics and information suppliers.

What is the significance of "the fourth party logistics", a new imported product, to the logistics industry in China or to the economic competitiveness and industry development in China? So far, there is no authoritative comment and discussion in China. The author tries to give you a comprehensive introduction through some understanding of the internationally accepted supply chain management in the logistics industry and comprehensive relevant information.

The difference between third-party logistics and fourth-party logistics

Author: Xiao Lu article Source: Original hits on this site: 669 Update time: 2007-2- 1

Abstract: In the logistics industry, the third-party logistics can no longer meet the needs of enterprises, because the third-party logistics lacks the strategic expertise needed to operate across the entire supply chain and truly integrate the supply chain process. The fourth party logistics can combine the best logistics suppliers in all fields without restriction, provide customers with the best logistics services, and then form the best logistics scheme or supply chain management scheme. However, the fourth party logistics can not exist independently without the third party logistics, because the fourth party logistics provides professional technology and information, as well as related consulting and solutions, and the solutions provided by the fourth party logistics must be realized through the actual operation of the third party logistics.

Keywords: fourth-party logistics, third-party logistics supply chain

People pay more and more attention to "the fourth party logistics". What is the fourth party logistics? What's the difference between it and third-party logistics? We can't answer this question accurately.

The concept of ——4PL was first put forward by Dow Bauknight of Accenture Company in the United States. It is defined as "a supply chain integrator who deploys and manages the resources, capabilities and technologies of itself and complementary service providers and provides comprehensive supply chain solutions".

Third Party Logistics (3PL) is defined as a professional logistics middleman who has signed a contract in the logistics channel and provided all or part of the logistics professional services for other companies in a certain period of time.

Why do we need the fourth party logistics? Because the third-party logistics lacks the strategic expertise needed to operate across the entire supply chain and truly integrate the supply chain process. The fourth party logistics can combine the best logistics suppliers in all fields without restriction, provide customers with the best logistics services, and then form the best logistics scheme or supply chain management scheme. However, third-party logistics provides services to customers alone or through its own subcontractors, and it is unlikely to provide the best combination of technology, warehousing and transportation services.

The significant difference between the third party logistics and the fourth party logistics is that the fourth party logistics focuses on reducing the operating costs of enterprises by optimizing and integrating the whole supply chain, while 3PL focuses on reducing the investment and costs of enterprises by externalizing logistics operations and logistics assets. In other words, the third party logistics provides substantive and specific logistics operation services, but its own technology is not high, while the fourth party logistics provides customers with the latest information technology and technology value-added services. For example, the supplier loads the goods to the demander, and at the same time hands over the transportation process of the goods to the third party logistics. Third-party logistics only arranges the loading and transportation of goods, but it can't solve various problems (such as traffic jam, goods preservation, etc.) ) in the process of transportation, and the fourth party logistics is to comprehensively consider the optimization of the whole transportation process (such as global satellite navigation system can find road conditions in time and avoid traffic jams, etc.). ) and make timely use of information and technology.

However, we will find that the fourth party logistics is developed on the basis of the third party logistics, and the scheme provided by the fourth party logistics must be realized through the actual operation of the third party logistics; The third party logistics obtains the guidance of process and scheme from the fourth party logistics, that is to say, the development of the fourth party logistics can not be separated from the third party logistics. The fourth party logistics is a virtual information platform, which integrates the whole scheme through e-commerce and provides customers with services including e-procurement, order processing capacity, virtual inventory management and so on.