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Negative

It's not your core competency ( Planning)


If you had delivered more on your promises now you can't
On his behalf you are predicting demand
You don't know the product

The future of all 3PL is to become a solution provider
Advantages:
Expansion of relationship
More margin businesses
Risk:

Being 4PL the direct relation is with the 3PL
4PL does coordination and planning- a strategic partner
Its already a 3PL
Its striving to be a 3PL and a 4PL
LIMITED LIABILITY CONTRACTS: RESPOSIBLE FOR DELTA
NEED:
Huge scope for cost reduction

3PL
Freight
Contract Logistics

LEAD LOGISTICS PARTNER
You will also manage
Warehousing
Logistics
Linking together transport, warehousing, manufacturing, inventory management and
suppliers

Competitive Advantage from IT
The IT system is a Proprietary system. So this forms a competitive advantage
Its Internet based
It can integrate with Customers software. So uses open source software

Put simply: the 3PL is the logistics engineer; the 4PL/LLP is the supply chain strategist;
and in between, customer demand takes all parties in any number of directions.
From its inception, the 4PL model was meant to control variability. Theres no greater
variable than globalization, and as a consequence, multinational businesses have been
likely disciples of 4PL and LLP outsourcing strategies.

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