17_SHD_May:ShD re-design 1/5/07 09:37 Page 19
Fourth Party Logistics ■
However we analyse such development, one The common goal for providers is to supply they have evolved into a diamond accessory for
way or another all organisations need to a seamless integrated solution for users’ the marriage of true supply chain concepts, the
outsource and collaborate with their requirements, one which increasingly has multi 7PL (if such exists).
user/provider counterpart(s) around the world in or shared user streams and which actively It’s true that we hear less of ring-fenced 4PL
order to leverage their respective positions targets and constructively realises new and organisations headed by bench-marking zealots
within the supply chain. On the one hand, value generating operating innovations so as to with a holistic, if rose tinted, vision of the
increasing specialisation is likely to result in improve the competitive advantage of their entire fragmented supply chain. Much more
greater outsourcing to providers to take user customers. To add a layer of complexity, we’re seeing re-engineered 3PLs transforming
advantage of best practices, to share the latest
technological advances and to allow user
Increasing specialisation is
themselves into supply chain specialists, both
international and local SME. The leading
organisations to focus on their core competence,
likely to result in greater
providers are increasingly aligned to and
namely manufacturing and marketing.
outsourcing to providers to
integrated with their user customers and other
Whilst this may further fuel supply chain
... allow user organisations
globally disparate but IT integrated and
integration, big will not always be best and the
SME providers have not disappeared.
to focus on their core
information rich networks of new supply chain
specialists.
It’s clear that the provision of supply chain
competence
The 3PLs have by stealth subsumed their
services is becoming increasingly number crunching 4PL task-masters, adopting,
sophisticated. This is being driven by global at the same time they must satisfy the improving and re-branding the ‘his and her’
users growing appetite to outsource and increasing demands of stakeholders and 3PL/4PL wedding attire that never really fitted
transfer non-core assets onto the balance sheets venture capital investors. anyway. Having dumped the 4PL concept, its
of larger international providers. Those These drivers concerning mining new best attributes have been retained, developed
providers are increasingly mining value by service and value adding opportunities and and presented as core value-adding 3PL
adding opportunities within the conventional satisfying VC investors are relatively new competencies at the heart of the outsourced
supply chain and, in addition, the points of territory for 3PLs. As such, further innovation service solution.
manufacture and sale. At the same time, the has been necessary to stay ahead of the game. It’s a quieter sort of marriage, and a service
SME providers are competing and retaining Which takes us back full circle. 4PLs are offering from which there will probably be no
their market through global collaboration with alive and well, but they don’t look the same going back in the 21st Century...
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