17_SHD_May:ShD re-design 1/5/07 09:37 Page 18
■ Fourth Party Logistics
3PL and 4PL: Collaborate or Die?
In a nutshell, yes. The leading industrial
organisations, for instance Wal-Mart, Dell,
Tesco and Cisco, all focus hard on realising the
benefits of collaboration, as are their
counterpart provider organisations.
Notwithstanding consolidation and the growing
number of such global organisations, there are
thousands more SME users and providers who
are now creating long term sales propositions
to remain competitive along-side their global
counterparts.
Small niche manufacturers and distributors
with global markets but relatively low volumes
compared to conventional large scale
manufacturers flourish in today’s highly
completive consumer markets where
innovation and difference is so highly valued.
Such enterprises don’t have the volumes to
justify dedicated international supply chain providers, like DHL, supplemented by local collaboration along the supply chain between
arrangements, but equally they must leverage contracting arrangements with niche SME provider organisations, allowing a fuller virtual
every competitive angle to survive and grow. providers at outreach nodes. On-the-other- or unbranded service to be created and expanded
As such, their ability to access state-of-the-art hand, SME users will seek to piggy-back off globally. The effect is the same, namely the
supply chain infrastructures is key and they the growing and constantly re-engineered consistent application of best practices at
will gravitate towards equally innovative SME shared-user infrastructures of the SME sensible cost to meet user customers’ service
providers. providers fast evolving into flexible and highly levels for their local, small volume or niche
For global users the solutions will in a large organised networks. activities which cannot be commercially
part be provided and managed by international Such networks spring from greater serviced by the international providers.
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