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Business & Marketing
Research Paper
English (U.S.)
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LOG490 CA2 (Research Paper Sample)

After reading the above articles, answer the following questions in a 3 to 4 page paper: Compare and differentiate the functions normally associated with 4PLs relative to the role of 3PLs. What are the factors responsible for more and more companies relying on the services of 4PLs? Explain why it is important to establish metrics that can help determine the “value” a 4PL can contribute to the supply chain when entering into these agreements? Would you consider Unyson's logistics solutions defined for Big Lots consistent with the role of a 4PL in adding value to a supply chain? (Explain and illustrate) source..
3PLs and 4PLs These acronyms stand for Third Party Logistics (3PLs) and Fourth Party Logistics (4PLs). 3PLs are companies that offer services that are logistical in nature, but with value added tax due packaging and other expenses. On the other hand 4PLs are those companies that manage one or two other companies (Branch 2008). The major differences between the two companies are as follows: The first is the issue of neutrality whereby the 4PLs are not considered part of larger logistics provider. This means the 4PLs are independent to work with the buyer to design and manage supply chains. On the other hand, 3PLs are considered part of a family that provides services like warehousing, transport among others. They are obliged to seek services of the parent company whether they like it or not. The next difference lies with the management of the supply chain. The 4PLs are basically supply chain management service providers while the 3PLs are logistics service providers. The interaction between these services and the 3PLs provides a total supply chain. (Button 2011) The process involved also gives some difference as in the 4PLs crosses departments and functions where they extend past the corporate level. They value technology as a process enhancer. On the contrary, 3PLs are transaction and not process driven. They aim at the work of orders and shipments which means they can not create a value proportion with the customer and thus low turn out. The 4PLs are both strategic and tactical as opposed to the 3PLs who are basically strategic. This is because 4PLs work with clients in developing supply chain strategy. They understand time market cycles. The 4PLs do not own assets as opposed to the 3PLs who must own a variety of assets to survive in the market. (Button 2011) More and more...
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