4

1. PPT 1
What Is Fourth Party Logistics (4PL)? A Simple
Introduction
here are many types of logistics partners, depending on the extent of the partners' responsibilities. A
fourth party logistics (4PL) partner can manage the entire supply chain and provide strategic insight
into the logistics process. In this article, we'll look into what fourth party logistics is, why you may
need it, and what benefits it brings.
What Is Fourth Party Logistics?
A firm using fourth party logistics outsources all its logistics operations to a single logistics partner.
That partner is responsible for assessing, designing, planning, building, running, and even tracking an
integrated comprehensive supply chain solution on the behalf of the firm. This is different from other
types of logistics models, where the firm may outsource just the delivery process. Therefore, fourth
party logistics represents a higher level of supply chain management for the client. A firm using 2PL
or 3PL is more involved in the day-to-day operations, whereas 4PL focuses on strategic
management and optimization levels. The responsibility of the 4PL goes far beyond just ensuring
timely delivery.
Businesses nowadays are manufacturing diverse products and have activities spread across the world.
With the advent of e-commerce and next-day delivery promises, customers expect a high level
of omnichannel delivery service. Thus, businesses have to handle multiple logistics arrangements
across online and offline channels. And they have to constantly strive for faster deliveries and
cheaper logistics costs.
A 4PL Partner Manages Complexity
All of this has brought in a staggering amount of complexity to supply chain management for
manufacturers. Big companies can have an in-house team to optimize their logistics and manage the
entire process. However, most businesses don't have that luxury. That's where 4PL logistics come in.
In this model, the business outsources the management of the entire supply chain as well as the
execution of the logistics activity. The 4PL partner proactively manages all aspects of the client's
supply chain to offer higher value than just physically delivering a product.
4PL Means Managing the Entire Logistics Process
A 4PL partner is much more involved with the business's operations than a second party or third
party (2PL or 3PL) partner would be. For example, a 4PL partner will manage the inventory at
warehouses, the fulfillment transport, the technology solutions at the back end, and so on. The 4PL
assembles, supervises, and manages the combination of warehouses, IT providers, business process
management, shipping companies, freight forwarders, other downstream 3PL providers, and various
other agents. Thus, the 4PL partner is almost like an in-house team. It is responsible for controlling
all resources, capabilities, and technology of an organization’s supply chain.

2. More Expertise, More Responsibility
Manufacturers outsource all these responsibilities because the 4PL partner has more expertise in this
area. The alternative would be hiring and training a team to manage the entire logistics operations,
which would be expensive and take a lot of time.
However, this outsourcing also means that the 4PL partner has a lot more responsibility. Clients
expect better results and performance. Otherwise, they might prefer taking care of these matters in-
house.
What a 4PL Must Do
The 4PL partner will need to bring in proven results across the process and affect the entire supply
chain. It has to manage people, process, and technology across the organization. It must constantly
optimize logistics performance. Typically, the 4PL doesn't own transportation vehicles, employ
drivers, or warehouse assets. Thus, the 4PL is also responsible for coordinating those aspects with
vendors. The 4PL acts as an interface between the client and these logistics service providers. Also,
the 4PL is responsible for ensuring all the partners seamlessly work together.
What else does the 4PL do? It provides its clients with a high-level, “control center” view of the
different aspects of their logistics. Typically, this is a single dashboard to view, manage, and track
the client's warehouses, shipping companies, delivery agents, logistics performance, delays, and so
on. It also provides information on demand, supply, and other fulfillment activities. This dashboard
acts as a single interface for all aspects of the supply chain process. Thus, it provides global visibility
to enable easy planning and execution.
Should your company use 4PL? Read on to find out more before making a decision.
4PL Provides Strategic Insights Into the Logistics Process
As mentioned, managing your supply chain has become really complex. You may have to assemble
raw materials and manufactured goods from different corners of the world. Customers expect fast
delivery and a great experience, whether be it in stores or online. And businesses are expected to bear
the costs of next-day deliveries, returns, and delays. Thus, supply chain management has become a
liability for most businesses. In contrast, a properly managed and optimized logistics process has
become a competitive advantage.
Large e-commerce companies, such as Amazon, have huge in-house teams that act as their 4PL.
They spend a lot of money and effort to manage, control, and improve their logistics. Most
businesses lack those sorts of resources and bandwidth. Thus, they can work with 4PLs who will
carry out these tasks on their behalf.
An effective 4PL offers the strategic vision to plan and operate the supply chain network that
efficiently manages the logistics across all platforms.
4PL Provides Global Visibility To All Elements ofthe Supply Chain
The modern, complicated supply chain process also mean that businesses need to oversee many
issues. Companies that provide global deliveries typically work with two dozen or three dozen
delivery partners specializing in different geographic areas. Coordinating with so many parties in
different time zones, speaking different languages, and with their own separate tracking tools can be
a nightmare. It's a highly disjointed and disconnected process. Moreover, businesses need visibility

3. on all their deliveries to customers, OEMs, contract manufacturers, suppliers, and carriers. That's
where the 4PL can also help.
The 4PL is the intermediary that readies, coordinates, and manages all the different partners in the
logistics process. It makes sure all the partners work together and integrate enterprise resource
planning and IT. The 4PL also provides a single view of all local delivery partners,
inventory, warehouses, fulfillment capacity, and delivery status. This can empower your business to
have a global view of your logistics operations at all times.
4PL Provides the Option ofDemand-Driven Logistics
Logistics in the e-commerce era is complicated. A sale can happen across many channels, such as
websites, offline stores, resellers, retailers, and so on. This omnichannel requirement may compel
your business to serve both physical locations and e-commerce fulfillment. You may need to ensure
all warehouses and fulfillment centers across the supply chain have enough stock to ensure timely
delivery. You may also need to plan in advance how you're going to move the products before the
customer even makes the purchase. If they have too much inventory and less demand, then it leads to
wasted costs. If you don't have the right inventory at the right place, you won't be able to deliver on
time. Thus, modern logistics requires accurate demand prediction.
Many 4PL providers these days have this capability. They can conduct a detailed analysis of
historical demand data to predict future expected demand. They can build intelligent shipping
processes to allocate inventory and meet customer demand, regardless of the location of the
inventory. These demand-driven strategies can help your business successfully forecast when and
where to move goods. An effective 4PL provider can also continuously optimize scheduling and
other capacities.
Benefits of 4PL
Why might 4PL be worth the expense?
 It adds a strategic oversight to your firm's supply chain to provide the highest level of
services for the best value.
 4PL provides a single point of contact for the entire supply chain.
 Also, it provides greater visibility of the entire supply chain.
 Your firm can focus on its core competencies while your 4PL partner manages the logistics.
 The 4PL partner can coordinate with a broader base of potential suppliers to ensure the
lowest transportation costs.
 It can reduce inventory wastage and eliminate inventory write-off costs.
 It provides standardization and automation of the logistics process through technology
integration.
 Your company can benefit from optimized service levels and inventories.
 Your 4PL partner can offer a different perspective and experience when considering your
existing logistics strategy.
Having a 4PL logistics partner has many potential benefits. It will add a new dimension to your
logistics. If your business is growing too complex for your in-house team to handle, then getting a
4PL partner on board is one of the best decisions you can make.

4. Ppt 2
What is 4PL?
A 4PL is a fourth-party logistics provider and it essentially takes third-party logistics a
step further by managing resources, technology, infrastructure, and even manage
external 3PLs to design, build and provide supply chain solutions for businesses.
4PL services typically encompass 3PL services as well as:
 Logistics strategy
 Analytics including transportation spend, analysis, capacity utilization, and carrier
performance
 Freight sourcing strategies
 Network analysis and design
 Consultancy
 Business planning
 Change management
 Project management
 Control tower and network management services, coordinating a wide supplier base across
many modes and geographies
 Inventory planning and management
 Inbound, outbound and reverse logistics management
4PL examples
Deloitte provides 4PL services that go above and beyond traditional 3PL by offering
strategic business insights and consultative services in addition to logistics execution.
Pros of 4PL
 Outsource the entire logistics segment of a business
 Take advantage of strategic advice in addition to operational support
Cons of 4PL

5.  Little control over logistics and fulfillment processes
 Likely to be expensive
4PLs are a relatively new concept, but typically they’re sought out by medium to large
sized businesses that are seeking a complete logistics solution from both an operational
and a strategic perspective
What’s 3PL?
3PL is a service that allows you to outsource operational logistics from warehousing, all
the way through to delivery, and ultimately enables you to focus on other parts of your
business.
Third-party logistics companies provide any number of services having to do with the
logistics of the supply chain. This includes transportation, warehousing, picking and
packing, inventory forecasting, order fulfillment, packaging and freight forwarding.
Wondering if your business needs to use a 3PL provider? When in doubt, use a pro-con
list - we got started on one for you.
What are the benefits of using a 3PL
provider?
Using a 3PL provider offers lots of advantages. The biggest is that by handing over
these logistics, you can focus on other aspects of your business such as sales,
marketing and product development. Outsourcing 3PL leaves you with more time and
resources. Here are a few other advantages:
 Cost reduction. 3PLs have more leverage with freight companies than individual shippers
do. Working with carriers on behalf of multiple customers, 3PLs can negotiate pricing based
on volume and order frequency. Using a 3PL to manage all or part of your supply chain also
gives you the freedom to invest in other key areas to grow and develop your business.
 Scale up or down as needed: Most businesses experience fluctuations
in demand throughout the year. Using a 3PL allows you to manage peaks and troughs more
effectively without having to commit to capital when you don’t need to.

6.  Provide a better customer experience: Customers expect next-day or same-day shipping
as standard. Using a third-party logistics provider allows you to offer fast shipping no matter
where the order is being sent, thanks to having access to the 3PL’s wide distribution network.
 Test new markets: With an international 3PL, you have the flexibility to test the waters in
new markets without having to commitment to any major investments like your own
warehousing space or staff.
 Mitigate risk: Shipping delays can and do happen for a number of reasons. When
unforeseen circumstances pop up, a 3PL is responsible for making alternate arrangements to
fulfil your orders as quickly as possible. You’ll also be protected in the event of damage or
loss of goods.
 Gain instant expertise and knowledge in the field. Especially if you’re just starting out,
who better to take care of your logistics than a company that specializes in them? Fulfillment,
warehousing and shipping come with major challenges of their own, so handing it off to the
experts can really make a difference in the way you function - and it leaves you to focus on
increasing your overall value to your customers.
 Get a handle on international logistics. If you’re selling internationally, 3PLs can take care
of documentation, customs, duties and other issues that come up at the borders that can
delay your shipments and result in high costs if not done thoroughly. Plus, you save time
trying to work out complicated rules pertaining to different countries.
 Generate cost savings. When it comes to warehousing, not having to maintain your own
space and staff can be a big cost-saving measure. Also, companies that provide
good inventory forecasting can help optimize your inventory levels and save money
on inventory holding costs.
What are the cons of using a 3PL provider?
A 3PL isn’t for every business. Here are a few drawbacks for you to consider. Would
these impact your business?
 Lesser control over the deliveryprocess. With a third-party taking care of your shipping,
there can be challenges when there are delays or problems in shipping a customer’s order.
The customer will be looking at you for the resolution, not your 3PL.
 Larger upfront investment. On the flip side of the cost issue, while hiring a 3PL can pay for
itself in the long run, the investment can still be a large cost in the beginning. If you don’t
need a big warehouse or don’t have many orders, the cost of a 3PL can be prohibitive.
 More distance between you and your product. The 3PL you choose may position you far
away from your products, which would be an inconvenience if you run into quality control
issues, or need to physically inspect your stock for any reason.

7. Which 3PL company is right for you?
Because of the sheer number of options, choosing a final provider can be an
overwhelming process. On top of that, you must gather detailed information about
the real cost of 3PL for your business.
Here are a few things for you to consider when choosing your 3PL partner:
1. Current and forecasted volumes. Choose a 3PL that can handle your current
volume, but that also will be ready to handle your volume if you suddenly add a bunch
of new stock, increase your stock volumes, or have a great spike in sales. You want to
choose a 3PL that can handle your business now and handle it when you’re at full
speed!
2. References and business performance. Check out references from other
customers that use the 3PL provider and get a report on the company’s performance
over the last few years. Seek out references and information about on-time deliveries
versus delays, and how they compensate businesses when there are problems. See
what their customers are saying about them - customer case studies and quotes are a
good indicator of how the 3PL provider has built and maintained the customer
relationship.
3. Compatible technology. If you’re using a cloud-based inventory management
system, you should probably choose a company that is similarly cutting-edge and ready
to integrate with your stock control software. Ensure that the 3PL provider’s technology
works with how you work.

8. PPT 3
4PL VS. 3PL
Examining the Difference
Lead logistics providers (LLPs), also referred to as fourth-party logistics (4PL) providers,
have a broad role within the supply chain. They assume many of the same roles as third-
party logistics (3PL) providers, but have much broader responsibility and accountability in
helping the customer reach its strategic goals.
"Accountability and control help differentiate a 3PL from a 4PL," says Andy Moses, senior
vice president of sales and solutions for Penske Logistics. "As a 4PL, we become a trusted
advisor, and the customer becomes reliant on our data to drive them forward."
When functioning as a 4PL, a logistics service provider becomes a true partner with the
customer, working to create a lean, cost-effective supply chain. "The 4PL is the big
umbrella. Under the umbrella you have all of the supply chains – transportation,
warehouses and anything that is moving," Moses says. "The 4PL manages the big umbrella.
That brings more sense of control and ownership."
A 4PL typically directs every moving part within the customer's supply chain and serves as a
single point of contact for all parties involved, says Moses. An LLP's role typically includes
managing and analyzing large amounts of data, overseeing transportation management,
managing other 3PLs and transportation service providers, supervising warehouse
operations, or operating any other portion of the supply chain.
"3PLs are very transactional. As a 4PL, you're leading that customer," Moses says, adding
that 4PL relationships typically evolve from a 3PL relationship. "The customer becomes
reliant on our data to drive them forward. Eventually we are sitting at the table with them,
and the operational component is expected."
An LLP works to:
 Optimize transportation operations
 Coordinate suppliers
 Integrate supply chain technologies
 Synchronize inbound logistics and outbound logistics flows

9.  Model and manage distribution networks
As an LLP, a 4PL uses its high level of visibility, real-time information, communication
abilities and broad knowledge to align 3PLs, customers and service providers. A 4PL draws
on the data it collects. In addition, it collects, stores and manages data from other supply
chain partners. That visibility plays a key role in allowing the customer and 4PL to provide
seamless supply chain services, improve customer service, manage exceptions, and remove
costs and inefficiencies from the supply chain.
How 3PLs and 4PLs Work Together
When a 3PL transitions to a 4PL, it changes the type of information the provider may
access. "I am still a Penske employee, but I am cut off from financial information at Penske
because I am working in the customer's best interest," Moses says, adding that a 4PL's goal
is to find the best overall transportation solution for its customer. "Penske submits bids, but
I am comparing them to bids from their competitors."
Transparency is key for 4PLs that may also function as a 3PL. They must proactively work
with customers to demonstrate the checks and balances they put in place, such as creating
confidentiality agreements that prohibit the sharing of information and data from the
customer's other 3PLs and transportation providers.
Building trust as a 3PL helps smooth the transition to a 4PL function. "You have to build
relationships ahead of time, and we do that as a 3PL," Moses says. "Then, as a 4PL, you
have to deliver and put it into action."

10. PPT 4
1PL, 2PL, 3PL, 4PL, 5PL Definitions
1PL - First-Party Logistics
An enterprise that sends goods or products from one location to another
is a 1PL. For example, a local farm that transports eggs directly to a
grocery store for sale is a 1PL.

11. 2PL - Second-Party Logistics
An enterprise that owns assets such as vehicles or planes to transport
products from one location to another is a 2PL. That same local farm
might hire a 2PL to transport their eggs from the farm to the grocery
store.
3PL - Third-Party Logistics
In a 3PL model, an enterprise maintains management oversight, but
outsources operations of transportation and logistics to a provider who
may subcontract out some or all of the execution. Additional services
may be performed such as crating, boxing and packaging to add value
to the supply chain. In our farm-to-grocery store example, a 3PL may be
responsible for packing the eggs in cartons in addition to moving the
eggs from the farm to the grocery store.
4PL - Fourth-Party Logistics
In a 4PL model, an enterprise outsources management of logistics
activities as well as the execution across the supply chain. The 4PL
provider typically offers more strategic insight and management over the
enterprise's supply chain. A manufacturer will use a 4PL to essentially
outsource its entire logistics operations. In this case, the 4PL may
manage the communication with the farmer to produce more eggs as
the grocery store's inventory decreases.
5PL - Fifth-Party Logistics
A 5PL provider supplies innovative logistics solutions and develops an
optimum supply chain network. 5PL providers seek to gain efficiencies
and increased value from the beginning of the supply chain to the end
through the use of technology like blockchain, robotics, automation,
Bluetooth beacons and Radio Frequency Identification (RFID) devices.

12. As we progress through the spectrum of logistics models from 1PL to 5PL, it's
clear that more and more of the logistics function is in the hands of the
provider rather than the enterprise itself. The most common models now are
3PL and 4PL and we'll look at how each one can help solve supply chain
challenges.

13. What is a Third-Party Logistics Provider?
he term "third-party logistics provider," or 3PL, has been around since the
1970s. It simply means that a third party is involved in a company's logistics
operations, in addition to the shipper/receiver and the carrier.

14. A 3PL does not take ownership of (or title to) the products being shipped. This
third party comes into play as an intermediary or manager between the other
two parties.
The first 3PLs were intermodal marketing companies that accepted loads from
shippers and tendered them to railroads, becoming a third party in the
contract between shippers and carriers, according to the Council of Supply
Chain Management Professionals (CSCMP) glossary. Today, any company
that offers some form of logistics services for hire is known as a 3PL. This
includes facilitating the movement of parts and materials from suppliers to
manufacturers, as well as finished products from manufacturers to distributors
and retailers.
A 3PL may or may not have its own assets, such as trucks and warehouses.
In some cases, the role of 3PL and broker overlap, but typically a broker is
used to engage trucking capacity for a specific shipment. A 3PL may act as a
broker or use brokers to move clients' freight.
Most 3PLs offer a bundle of integrated supply chain services, including:
 Transportation
 Warehousing
 Cross-docking
 Inventory management
 Packaging
 Freight forwarding
A 3PL can scale and customize services to meet customers' needs based on
their strategic requirements to move, store, and fulfill products and materials.
Companies turn to 3PLs when their supply chain becomes too complex to
manage internally. For example, a company may grow through mergers and

15. acquisitions, so a supply chain that was manageable at one time outgrows the
in-house capability.
The 3PL offers experience gained from working for multiple clients across
many different industries. They also offer technology solutions — in some
cases, proprietary tools — such as transportation and warehouse
management systems beyond what the shipper could afford to invest in
independently. Long-term relationships with carriers can result in better pricing
and service during periods when capacity may come at a premium. The
economy of scale can lower prices on everything from packing tape to ocean
shipping rates.
Advantages of 3PL
A 3PL will offer innovative strategies to transform your supply chain into a
cost-effective, responsive model. Consider what we're doing at Warehouse
Anywhere as an example. In contrast to the traditional single distribution
center (DC) model, we have pioneered and perfected forward-deployed
inventory management. The common hub-and-spoke DC model is not able to
keep up with the pace of business, with large inventories and infrequent truck
service. We've developed the forward-deployed model for warehousing and
distribution that uses a larger number of smaller locations to move products
closer to the customer. This decentralized, hyper-connected model provides
the responsiveness needed to meet customers' expectations for timely
delivery.
No matter if you're direct-to-consumer or in a service-level agreement
situation, customers expect overnight delivery, or as close to it as possible.
The Warehouse Anywhere system can optimize your inventory per location to
ensure stock is on hand in areas of highest demand. You will save on
transportation and logistics expenses while improving customer service.

16. Disadvantages of 3PL
While the 3PL model has been successful for decades, there are some things
to consider. Perhaps the most significant caveat is the lack of direct oversight
and control. After all, a 3PL is an outsourced service provider. That means
some activities will take place outside of your direct supervision. Ensuring
quality control and customer service requires an extra level of diligence. If a
3PL fails to deliver on a customer's expectation, the customer will blame your
company, not the 3PL.
Another issue is the degree of dependency a 3PL can create. When you
outsource a significant segment of your business, it can be difficult to switch
providers or take the operations in-house if pricing or service levels no longer
meet expectations.

17. 3PL by Industry
3PLs for Medical Devices
For industries with complex supply chain requirements, 3PLs deliver solutions
that turn challenges into competitive advantages.

18. For the medical device industry, visibility and value-added delivery processes
are top priorities. To meet regulatory requirements, devices must be tracked
throughout every step of the process with a verifiable chain of custody. This
capability requires complex technology solutions that can track inventory
across multiple locations and carriers to ensure individual devices can be
tracked and traced at a moment's notice.
Medical device shippers rely on 3PLs for services that go well beyond
dropping off boxes on the dock. Clients are looking for delivery to the end-user
department, on-site inventorying, returns and repairs and other small but vital
steps in serving customers.
A 3PL can help a medical device company develop systems to optimize
delivery from a distribution hub to individual locations. Rather than delivering
half a dozen items in many shipments, the 3PL can develop the visibility to
consolidate deliveries to reduce costs significantly. 3PLs can manage
expedited shipments to fulfill just-in-time delivery for high-value items, such as
knee implants. Greater visibility into inventories and reverse logistics improves
ease of auditing, reducing the need for physical auditing.

19. 3PLs for Field Services
Companies with extensive field service operations, no matter if they're strictly
internal or offer services to clients, will benefit from 3PL partnerships. A field
service environment is different than a manufacturing situation and requires
unique solutions. Meeting service level agreement (SLA) expectation is crucial
to customer satisfaction, and a well-managed forward deployment program
can ensure standards are met or exceeded.

20. To meet these high expectations, a 3PL can forward deploy commonly used
items in smaller distribution hubs for rapid, lower cost response. The 3PL can
develop a database of the most often ordered items and ensure inventory is
managed to meet ongoing demand. Having the right part available when the
service technician makes the initial call will contribute to a high level of
customer satisfaction. The service tech can stop at the hub to pick up parts or
place an order for expedited delivery to the job site.

21. 3PLs for Retail
Thanks to the “Amazon effect,” customers have come to expect
merchandise to be readily available online or in-store. After all, if you
can receive practically anything from Amazon in two days or less,
customers don't understand why they can't receive goods from other
shippers in the same time frame. A 3PL can develop a strategy to
improve supply chain discipline to better compete with Amazon on
shipping times and fulfillment accuracy.

22. What is a Fourth-Party Logistics Provider?
A fourth-party logistics provider, or 4PL, represents a higher level of supply
chain management for the customer. The 4PL gives its clients a “control
tower” view of their supply chains, overseeing the mix of warehouses,
shipping companies, freight forwarders and agents.

23. The goal is to have the 4PL act as the single interface between all aspects of
the supply chain and the client organization. Consulting firm Accenture
originally copyrighted the term in the mid-1990s, but it has since fallen into
generic use.
In some cases, a 4PL may be established as a joint venture or long-term
contract between a primary client and multiple partners, often to manage
logistics for specific locations or lines of business. The structure of a 4PL can
vary, as there may be a 4PL component within a larger 3PL relationship. A
4PL is a form of business process outsourcing, similar to contracting out
human resources or financial functions.

24. Typically, the 4PL does not own transportation or warehouse assets. Instead,
it coordinates those aspects of the supply chain with vendors. The 4PL may
coordinate activities of other 3PLs that handle various aspects of the supply
chain. The 4PL functions at the integration and optimization level, while a 3PL
may be more focused on day-to-day operations. A 4PL also may be known as
a Lead Logistics Partner (LLP), according to the CSCMP.

25. The primary advantage of a 4PL relationship is that it is a strategic
relationship focused on providing the highest level of services for the best
value, as opposed to a 3PL that may be more transaction focused. A 4PL
provides a single point of contact for your supply chain. With a 3PL, there may
be some aspects that you still have to manage. The 4PL should take over
those processes for you, acting as the intermediary for 3PLs, carriers,
warehouse vendors and other participants in your supply chain.
The 4PL relationship simplifies and streamlines the logistics function using
technology for greater visibility and imposing operational discipline across
many partners and suppliers. The enterprise can focus on its core
competencies and rely on the 4PL partner to manage the supply chain
function for maximum value. Basically, the 4PL acts as the enterprise would if
the supply chain functions were managed in-house.
As companies transition their supply chain model to forward deployment or
decentralized distribution, a 4PL partner can step in and manage that
complexity. Retailers, in particular, are shifting toward a more nimble model to
support e-commerce and omnichannel services. A 4PL can manage the
multiplying number of resources that it takes to compete at that level. The
days of the million-square-foot super regional DC may be over, as companies
opt for shared warehouse space near major customer centers to speed up
responsiveness. The 4PL can manage those relationships, as well as optimize
the network to use parcel carriers or couriers to support e-commerce, rather
than LTL or truckload services.
Fourth-Party Logistics Advantages
Choosing a 3PL vs. a 4PL can be a complicated decision that depends on the
complexity of your supply chain and your company's strategic goals.

26. A 3PL relationship works well when the organization has a solid, high-
performance supply chain strategy in place and requires support to execute
the plan. Working with a 3PL will typically require a high level of internal
management commitment and oversight to ensure performance meets your
standards. However, many day-to-day decisions are out of your hands as you
count on the providers selected by the 3PL to meet your service
commitments. An asset-based 3PL may focus too much on ensuring that its
own assets are fully utilized at the expense of lower rates or better services
from other providers. For smaller companies, a 3PL can provide an immediate
level of scale that would otherwise be cost prohibitive.
A non-asset based 4PL is agnostic in choosing suppliers, concentrating on
finding the best combination of value and service. Typically, a 4PL will have
integrated technology offerings that deliver a high level of visibility into the
supply chain for tactical and strategic analysis. Of course, internal resources
are still necessary to manage the 4PL performance, but it should be a higher
level of oversight than a 3PL.
Warehouse Anywhere has performed as both a 3PL and 4PL for our clients.
Recently, we've seen great success in acting as a 4PL in managing forward-
deployed inventories in a variety of vertical markets. We can localize your
inventory in hundreds of U.S. cities in a very short period of time.

27. 4PL by Industry
4PLs for Medical Devices
Did you know that sometimes surgeons order a medical device such as a
knee replacement only after the patient has started the anesthesia process?
Talk about just-in-time delivery. Surgeons may order several sizes of a
product because they don't know precisely which one they'll need at the start

28. of the procedure. A 4PL can manage the complex chain of custody
requirements and delivery schedules to meet physician's requirements
and reduce inventory costs.
For one medical-device manufacturer Warehouse Anywhere developed a
network of inventory centers to service hospitals and surgery centers. We
maintain their inventory, relieving field reps of that burden and eliminating
consignment costs. Since we guarantee delivery of items up to one hour prior
to surgery, physicians can preschedule surgeries as well. We handle all
reverse logistics and restocking of unused items.
We found in many cases physicians typically ordered more than $3.5 million
worth of devices in a year, but used only about $300,000 worth. The extra
cost of shipping these items to and from the hospital and DC were excessive,
and consumed by the medical device company. Our solution helped eliminate
inventory write-off costs while improving service to the medical facilities. Now,
this medical device company sees their supply chain as a competitive
advantage rather than a cost center.

29. 4PLs for Field Service
To serve field service and repair organizations a 4PL takes control of the
supply chain including warehousing, fulfillment, transportation and technology.
The Warehouse Anywhere forward-deployed 4PL model is perfect for field
service businesses because we manage all the moving parts to meet your
service expectations. The process begins with a detailed analysis of parts

30. usage based on historical data and installed customer base to determine the
individual parts, quantities and locations necessary to meet anticipated
demands.
The field techs don't have to function as warehouse operators anymore.
Parts location and inventories are visible to all the techs in the region,
reducing the need for trunk stock.
For one field service organization supporting retail and financial services
technology, Warehouse Anywhere established a decentralized warehousing
model, and developed a fulfillment system to provide parts in 30 minutes or
less, meeting or exceeding service level agreements. Its real-time inventory
tracking and visibility support full chain of custody, 24/7 inventory availability
and ERP/IT integration.

31. 4PLs for Retail/E-Commerce
The largest e-commerce companies, like Amazon, act as their own 4PLs by
owning and managing the entire supply chain. Few other companies have the
resources to match that, so they turn to 4PLs for strategic management.
Over the years, many retailers have used 3PLs for transportation,
warehousing and fulfillment. As e-commerce boomed, retailers often bolted on

32. those capabilities to existing systems, creating parallel supply chains to meet
in-store and online demand. As e-commerce logistics matures, it's become
apparent that an omnichannel approach is a sustainable direction to support
customers, regardless of the channel from which they purpose.
A 4PL offers the strategic vision to create a new supply chain network
that efficiently manages the flow of product across all platforms. A
single view of inventory gives the retailer the power to allocate inventory
and meet customer demand regardless of the status or location of the
inventory.
Forward-deployed inventory can serve both physical locations and e-
commerce fulfillment. For brick-and-mortar locations, the forward deployment
supports same-day inventory replenishment as well as online order fulfillment
from the same location.
With smaller store footprints, there's no room “in the back” anymore. For a
retail apparel customer, we forward deployed inventory within a five-mile
radius of stores to replenish popular items within one hour.
PL vs. 4PL - What's Best for Your
Company?
If your company is dealing with an increasingly complex supply chain and
struggling to meet customer expectation for faster response, then an
innovative 3PL or 4PL may be the best solution for you.
In partnering with an innovative leader, your supply chain solutions can be
optimized for maximum customer value with a competitive advantage. The
most successful logistics partnerships seamlessly blend the flow of products

33. and information flow, and that's where our technology truly enables supply
chain excellence.
Whether you're direct-to-consumer or offering service-level agreements to
business-to-business partners, you know that overnight delivery (or close to it)
is what your customers expect. That's why Warehouse Anywhere is on a
different level than other 3PL companies. If you are servicing a large national
market, you can place fast-moving parts, materials or products in multiple
fulfillment warehouse locations that are closest to your points of highest
demand. This forward-deployed inventory model allows us to store your
resources everywhere that you need them to be.
In addition to a distribution or fulfillment service, you'll also have a layer of
technology and expertise that a traditional 3PL warehouse doesn't have. You
will save on your transportation and logistics while also achieving excellent
customer service.
To find out more about positioning your assets where you need them most,
please don't hesitate to connect with me on LinkedIn or contact us online
today.