Foreseeing Fourth Party Logistics Growth

According to consultants, Frost & Sullivan, fourth party logistics (4PL) suppliers now offer value rather than cost. By harmonizing third party logistics (3PL) specialists skills, strategies, technology and global penetration, 4PLs are a much more attractive proposition.

As Cecilia Cabodi, Frost & Sullivan Research Analyst, observes,ā€ Due to 4PL, supply chain outsourcing has undergone a paradigm shift from a cost center to a revenue generating opportunity. It has leveraged logistics to improve service levels to customers, accelerate the speed of launching new products and stimulate market penetration.ā€

One caveat offered by the consultants is the need that 4PLs have to clearly differentiate themselves and their services from 3PLs.

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