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Components of 4pl

1. A 4PL acts as a resources provider by providing warehousing and packaging services. 2. It serves as a supply chain infomediary by collecting and disseminating information to partners using technologies like GPS and GIS. 3. The 4PL's control room is the decision-making center staffed by logistics experts from partner organizations. The document then distinguishes between distribution logistics and supply chain management. Distribution logistics deals with outbound activities and operational decisions. Supply chain management takes a more strategic view and integrates inbound/outbound activities across the entire supply chain.

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Ch Rajkamal
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2K views2 pages

Components of 4pl

1. A 4PL acts as a resources provider by providing warehousing and packaging services. 2. It serves as a supply chain infomediary by collecting and disseminating information to partners using technologies like GPS and GIS. 3. The 4PL's control room is the decision-making center staffed by logistics experts from partner organizations. The document then distinguishes between distribution logistics and supply chain management. Distribution logistics deals with outbound activities and operational decisions. Supply chain management takes a more strategic view and integrates inbound/outbound activities across the entire supply chain.

Uploaded by

Ch Rajkamal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Components of 4pl:

1. Resources provider: finally, the 4PL provider must also provide some resources that
are critical to the functioning of the conventional supply chain solutions. These
resources include warehousing, packaging etc.
2. Supply chain infomediary: The 4pl should have extensive resources and capabilities
for collecting and disseminating information to various partner organizations. It must
use enhanced technologies like GPS, GIS to increase visibility of goods.
3. Control room: The control room is the brain and intelligence of the 4PL. it is the
decision making components and should consist of experienced logisticians.
Ideally, the control room component should contain people from partner and client
organizations who can enhance returns with their collective intellect.
4. Architect / integrator: The 4PL should be the instigator of continuous innovations that
help in maximizing the use of 3PL service providers to the client organization. The
process of innovation makes sure that the relationship between that of the 3PL and
the client organization does not remain a static one and is evolving continuously for
the benefit of the client organization.

Distinction between Distribution Logistics and SCM:
In today scenario the term Supply chain Management is generally used for denoting the
concept of logistics. The total logistics concept is divided into Inbound and Outbound
Logistics which advocates the benefits of viewing the various elements of logistics as an
integrated whole.
Basis of
Distinction
Distribution Logistics Supply chain Management
Meaning Management of movement,
inventory control, protection
and storage of raw materials,
and of processed of finished
goods to and from the
production line.
SCM is an integrative philosophy to
manage the total flow of distribution
channel from the supplier to the ultimate
user.
Scope Deals with outbound activities
only
It deals with logistics (inbound and
outbound), supplier and customer
activities.

Focus Distribution logistics is
typically based on the
individual business with the
objective of making enterprise
distribution system more
efficient through internal and
external planning and control
SCM is based on the external relationships
between the players in the entire supply
chain and focuses on how to improve
trading in general.
The SCM concept thus provides a broader
perspective across the supply chain than
has been traditional approach within
logistics
Decision
Making
Distribution logistics deals with
operational decision making
Supply chain management is very much a
strategic planning process, with a
particular emphasis on strategic decision
making.
Creation of
utility
Concerned with creation of
time and place utilities
Concerned with time, place, firm and
possession utilities
Cost
minimization
Minimize distribution costs
and ensures cost
effectiveness
Minimize overall cost and ensures
competitiveness.

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