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,” 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.”

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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