What does the fourth party logistics do?

Regarding the concept of fourth party logistics, one definition means that integrators use subcontractors to control and manage the point-to-point supply chain operation of customer companies; The other is to integrate supply chain solution providers, centrally manage their own resources, capabilities and technologies and provide complementary services.

The fourth party logistics provides logistics planning, consulting, logistics information system, supply chain management and other activities for the first party logistics, the second party logistics and the third party logistics.

The fourth party logistics is the comprehensive logistics provided by the logistics industry, including the arrangement of finance, insurance and multi-station logistics distribution. The difference with the third-party logistics is that the third-party logistics only provides logistics services, while the fourth-party logistics is integrated, for example, it can assist with import and export tariff issues, collection and other functions. The fourth party logistics is the provider of logistics system design and integration.

Conceptually, the fourth party logistics is a leading logistics service provider, providing comprehensive supply chain solutions through the influence of the whole supply chain, and also bringing greater value to customers. Obviously, the fourth party logistics integrates social resources on the basis of solving enterprise logistics, and solves the problems of fully enjoying logistics information and making full use of social logistics resources.

In essence, the fourth party logistics provider is a supply chain integrator, which mobilizes, manages and organizes the resources, capabilities and technologies of itself and complementary service providers to provide integrated supply chain solutions.

The fourth party logistics is the integrator of supply chain. Under normal circumstances, the government takes the lead in building a fourth-party logistics platform, promoting the development of regional logistics industry, and providing * * * information sharing and publishing services, which is the leading force of supply and demand sides and third-party logistics.

It is not only the benefit of logistics, but also provides a complete supply chain solution through its information technology, integration ability and other resources, thus obtaining certain profits. It helps enterprises to reduce costs, effectively integrate resources, and provide customers with unique and extensive supply chain solutions relying on excellent third-party logistics suppliers, technology suppliers, management consulting and other value-added service providers.

The concept of logistics was first formed in the United States, when it was called "physical distribution" (PD), which means physical distribution in Chinese. This concept entered Japan as 1963. At that time, the definition of logistics was "the functions of material storage, transportation, loading and unloading, packaging and processing between production and consumption, and the information function as a backup to control these functions." Play a bridge role in material sales. "

China introduced this concept in 1980s, when "Logistics" was called "logistics" in English, which originally meant logistics, and was later used in the circulation of materials, forming a modern logistics concept that is still in use today. It is a strategic measure to meet the needs of consumers and unify the market conditions such as manufacturing, transportation and sales.

As one of the three major circulation systems, logistics is the third profit source after labor and resources. 2 1 century is an era of great development of international logistics industry, which will be characterized by informationization, networking, intelligence, flexibility, standardization and socialization.

In general, the supplier completes the logistics service by providing materials to the demander, and the third party logistics (TPL) refers to the logistics operation mode characterized by a third party other than the logistics service provider and the demander. This kind of third-party logistics is developed by enterprises relying on sea or air transport, railway or road transport.

The fourth party logistics (4PL, FPL) is responsible for the functional integration beyond the arrangement of the third party logistics.

Because of global supply chain management, it is impossible to organize and integrate only by third-party logistics. In addition to maintaining speed and effective operation, we must also operate around our own nature and reorganization, and acquire capabilities by means of cooperation rather than direct control. Therefore, it is necessary to introduce knowledge and resources outside a single organization into the fourth party logistics.

References:

Baidu encyclopedia-the fourth party logistics