An estimated 60% volumes in Logistics and Supply Chain activities in the country are managed by 3PL and 4 PL players.
A third-party 3PL logistics provider provides outsourced logistics services to companies. These services can make up part or sometimes all of their Logistics and supply chain management activities.
The 3PL activities include: Inventory storage and management, Picking and packing, Freight forwarding, Shipping/distribution, Customs brokerage, Contract management, IT solutions, Cross-docking etc.
A fourth-party 4PL logistics provider 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:
Analytics including transportation spend, analysis, capacity utilization, and carrier performance Logistics strategy, 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
To avail services of these players in the market make a lot of sense to Shippers, because they bring in the necessary expertise and help in close co-ordination and adherence to timelines and controlling costs.
However most of the players offering these services are Asset light and do not have captive Vehicle inventory and outsource it to service providers / transporters. Often it is observed that there is always a challenge when the vehicles are required to be placed thereby putting pressure on the delivery timelines.
An association with Digital platform like VALUESHIPR www. valueshipr.com helps 3PL & 4PL Logistics players to directly integrate with the Transporters, streamline, integrate and adhere to high service standards at optimum costs, in their business dealings.