( 4PL ) 4th PARTY LOGISTICS

4th Party Logistics Fourth-party logistics (FPL or 4PL) is an emerging new outsourcing concept. Andersen Consulting has defined FPL as: "A supply chain integrator who assembles and manages the resources, capabilities, and technology of its organization with those of complementary service providers to deliver a comprehensive supply chain solution". FPL can be considered as a comprehensive supply chain solution which combines the capabilities of management consulting, IT technology and TPL-providers.

Third and Fourth Party Logistics Providers 3PL 4PL Modes 3PL Parts and Raw Materials 3PL Distribution Centers Manufacturers Consumers 3PL Retailers Management

Difference between 3PL and 4PL FPL differs from TPL in several respects FPL organization is often a joint venture between a primary client and one or more partners; FPL organization acts as a single interface between the client and multiple logistics service providers; and - all, or a major part, of the client's supply chain is outsourced to the FPL organization.

ROLE OF 3PL in Humanitarian Logistics UPS, FedEx, CMA CGM are supporting relief efforts in Japan Why ???

Different aspects of relief operations QR = Quick response CR = Continuous replenishment VMI= Vendor managed inventory

Predictions and Conclusions The total market for freight transportation intermediaries is still growing with the boom of e-commerce; The conventional 3PLs will not fade, but will face with the competition from the online logistics providers; The companies have to combine the logistics expertise with advanced technology to evolve; Strategic alliance and merge/acquisition will be important to obtain comprehensive and intergrated supply chain solution capability; Small carriers and niche carriers will benefit from increased access to shippers and reduced search costs Medium sized and Large carriers may resist and try to continue business as usual or simply become e-commerce enabled using current business models The 120+ on-line freight marketplaces will be reduced to less than 10 leaders and a few successful niche players in near future.