Warehouse inventory Management Company-4pl logistics company-Supply chain company-3pl logistics services

Now, many large scale companies are turning to third party service providers (3PSP), third party logistics providers (3PLs), and fourth party logistics (4PL) providers to run their reverse logistics because they can provide the cost-efficiencies. This allows companies to focus on their core activities and business priorities. A Fourth Party Service Provider (4PL) company is a supply chain services provider that searches for the best supply chain management solutions for its client. To do this, companies outsources to various 3PL companies and logistics services provider companies use its own resources to provide better services to their clients.

The Supply Chain Management Professionals defines a Fourth Party Service Provider as an integrator that gathers the technology, capabilities, and resources of its own company and other company to design build and run comprehensive supply chain solutions. Oversee the customer’s entire supply chain the 4PL service providers are engaged as a joint venture or through a long term contract with a customer. This is alternative to off-shoring or foreign outsourcing.

The 4PL services provide value by using reconfiguration and latest technology using other outside resources, like 3PLs, to manage all supply chain functions as agreed with the customer. 4PL services are more manageable in scope, and are more focused on the integration of an organization’s functions and the use of technology. This allows fourth party logistics services to provide cost-savings, leaner production, inventory management, greater efficiencies and distribution. This also includes analysis and collection of customer and end user feedback, and reverses supply chain/circular economy functions.

The growth of technology and the need to integrate the data into useful information that can used by companies to direct its activities in better way, the increasing complexity of the regulatory environment for trade and the speed at which all this change needs to happen is pushing the growth in this service field as companies focus their resources on their core business activities. A Fourth Party Logistics can help bring your logistics activities together more cohesively. With this reason companies move towards 4PL services that logistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates those activities with other business functions including customer service, sales and marketing, manufacturing, procurement, finance, and information technology.

The logistics activities of inbound and outbound transportation management, warehousing, distribution network design, supply/demand planning, fleet management, inventory management, order fulfillment, materials handling, and management of third party logistics services providers is a reflection of a company's overall business strategy. In consideration of all the variables, the type of information and amount available through technology, and the assessment of all the combinations and permutations of logistics available is a extremely large task that will continue to evolve as international trade grows and innovates.