OUTSOURCED
LOGISTICS
What is the real role of today’s 4PLs? How do they differ from 3PLs? Who’s driving the growth of this outsourced logistics niche? Inbound Logistics picks up the lead and explores the changing dynamics of the 4PL/LLP market.
WARD MOMENTUM
O utsourced logistics partnerships are taking companies to places they’ve never been before – both in terms of emerging logistics markets as well as the level of supply chain complexity and strategy necessary to meet ever-changing global demands. As businesses become more inclined to partner with multiple niche logistics providers–maintaining expertise in specific verticals, operating regions, or service capabilities–their supply chains are evolving into multi-tiered networks, stratified by numerous transportation and logistics contracts from raw materials procurement to domestic point of consumption. The role of the fourth-party logistics provider (4PL) and lead logistics provider (LLP) emerged as this trend toward global out- sourcing began to outpace the organizational infrastructure available in-house to handle growing offshore networks.
by Joseph O’Reilly
July 2007 • Inbound Logistics 81
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