Logistics Companies Around The World Essay

Logistics Companies Around The World Essay

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Logistics companies around the world, for a very long time, had been using 2PL for a reasonable amount of time, which involves the transaction of movement of goods between two parties, after realizing that many manufacturing and service corporations were taking on too much responsibilities in doing too many things at once. From procuring to producing to transporting the product, that not only does it results in losses for companies in the face of ever rising expenses, which were proving difficult to control, but also because it was making employees lose their productivity, as they had to handle the nitty gritty details of the logistics operations which (aside from those responsible to handle them) made them lose focus on the tasks that they were actually assigned too.
With the advent of globalisation, companies started to shed the extra non-core operations, especially logistics operations, to third party organizations, which marked the origins of 3PL companies. But in recent times, the advent of 4PL has taken the global logistics company by storm, which goes above the level of 3PL by adding in the dimension of technology and systems to further collaborate with the supply chain system. But what exactly are the differences between 3PL and 4PL? 3PL services are services are “integrated, or “bundled” together by the provider. These firms facilitate the movement of goods from suppliers to manufacturers, to distributors and retailers and from customers for the returned goods”, whereas 4PL “unlike 3PL, combines process, technology and the process to manage. The 4PL is a business process outsourcing (BPO) provider. A 4PLis neutral and will manage the logistics process, regardless of what carriers, forwarders or warehouses are used.”(Samar...

... middle of paper ...

...ikely to be beneficial for Pakistan in terms of the theory of the relationship between the 4th party logistics service and industrial
Cluster competitiveness. Subramanian, Nachiappan ; Gunasegaram, Agape ; Papadopoulos, Thanes ; Nia, Pie(2016) points to the fact that industrial clutters of a developing nation, in particular Pakistan, “are subject to challenges such as globalization, limited resources, volatility of international markets and financial instabilities. It is believed that the provision of 4PL logistics can result in such challenges by using
Collaborative operational capabilities from within an industrial cluster to their enhance
Competitiveness. “There are six elements to provide for that synergy of logistics, expansion of industrial chain, financial ability, and creativity and innovation ability, cooperation of companies and flexibility of supply chain

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