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Third & Fourth Party Logistic Services

Our range of services include Third Party Logistics Service and Fourth Party Logistics Service.

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A third-party logistics (3PL) firm is an external supplier that performs all or part of the company's logistics functions. The definition encompasses providers of services such as transportation, warehousing, distribution and so on.

The use of third party logistics providers has grown dramatically over the last several years and has increasingly become an effective way to reduce costs and spread risks for traditional, vertically integrated firms.

The economic advantages of using 3PL suppliers are:

  • Elimination of infrastructure investments
  • Access to world-class processes, products, services or technologies
  • Improved ability to react quickly to changes in business environments
  • Risk sharing
  • Better cash-flow
  • Reduction of operating costs
  • Exchange of fixed costs with variable costs
  • Access to resources not available in one's own organization


As customers grow accustomed to using the services of a 3-PL provider for certain activities such as transportation and warehousing, they become better candidates for a broader range of service offerings, or value-added services. Examples of value-added services provided by 3PL providers are:

  • Develop the best practices & procedures in Logistics industry
  • Outsourcing of service providers for logistic operation
  • Incorporate innovative methods & applications through latest technology
  • Supply chain planning to supply chain execution
  • 3PL, Inbound & Outbound logistics outsourcing & Warehousing
  • Complete full proof, easy to use tracking solutions
  • IT & Logistics technologies for SCM
  • Pick and pack
  • Marking, tagging, and labeling
  • Product returns and reverse distribution
  • Packaging and repackaging
  • Salvage and scrap disposal
  • Telemarketing

 

3PL is an extension of trucking, warehousing, and distribution. It is the provision of these products under one roof, with the aim of taking over some of the associated functions such as stock keeping and documentation. 3PL services also include basic functions comprising physical activities such as transportation, warehousing, line haul and the rental of material handling equipment.

However, the task of providing a full outsource solution comprising different services from one service provider is difficult. It is, therefore, not surprising that opportunities are created for 4PL service providers to assist companies in coordinating all the different 3PL activities, which are provided by different service providers

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4PLs represent the next stage of development in logistics service providers. Consequently, while the traditional activities of warehousing, inventory management and transportation may be given out to one 3PL, other processes like HRD, security and product development are done by other 3PLs. In effect, the activities done by a set of internal departments are now being carried out by a set of 3PLs. As a result the companies now have to deal with a whole set of 3PLs and each needs to be coordinated with and linked via personnel and IT. The number of transactions and the costs reduced are thus offset to a great extent by the cost and time of transacting with all these 3PLs.

Today more and more business processes are being outsourced. In the West, processes like bill payment, credit tracking, invoice generation, HRD, transport and warehousing are all being outsourced. Outsourcing of these activities may indeed add considerable value to the product, but on the flip side, even in a developed economy like the US, there are no 3PLs that offer every process with equal competence or reach.

The 4PL is an integrator that assembles the capital, technology and resources of its own organization and other organizations to design, build and run supply chains. The typical 4PL would eliminate complexity, share benefits of scale and capital and can drive innovation due to its overall view. In other words, a 4PL manages other 3PLs.

The primary role of the 4PL is the management of complexity and time. Two key distinctions make the concept of 4PL unique and set it apart from other supply chain outsourcing options available in the market today:


  • A 4PL delivers a comprehensive supply chain solution
  • A 4PL delivers value through the ability to have an impact on the entire supply chain.

In both these concepts, 4PLs have evolved because of constraints faced by the 3PLs. In other words, 4PL is the evolution of supply chain outsourcing. The convergence of technology and the rapid acceleration of e-capabilities have heightened the need for an over-arching integrator for supply of chain spanning activities. 4PL is a non-asset based logistics operator which has chosen to become an outsourcing specialist - assessing the entire supply chain and contracting those best able to provide the required services, all in order to reduce the customer's investment in inventory.

4PL operators handle the client's entire logistics function for optimum results. It is not just about reducing costs of warehousing and transport, but rather about managing the logistics functions and achieving optimization. 4PL consultants are being used to analyze certain areas and recommend solutions where processes can be optimized.

It follows naturally that 4PL service providers must become long-term partners, as they are directly involved in the business processes and strategies.

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Abhi Impact Logistics Solutions Private LimitedPrimrose - The Mall, Office No. 16, 3rd Floor, Building B, Survey No. 76/3, Near Datta Mandir, Baner Road, Primrose The Mall, Pune-411045, Maharashtra, India

Dhiraj Chhajed (Director)

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