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Solutions / Results: Through the lead logistics provider or 4PL and shipper relationship, the 4PL assumed responsibility for execution and management of other 3PLs. The 4PL provided an enhanced ability to view each supplier's key performance indicators integrated with financials. Taking a Customer-Centric Approach.
The second goal was to work with a fourth party logistics (4PL) partner that had invested in cutting-edge transportation management and visibility solutions. A 4PL is a company that plans and executes transportation on behalf of their customers. The analysis was not all that accurate.
This system uses Multi-Echelon Planning as a base combined with statistical models we developed that are applied at different phases of the exercise. It starts with assessing the inventory health of an organization; root cause analysis is performed at strategic, tactical and operational levels; and then recommendations are proposed.
The best way to do that is by completing a thorough analysis of current actual costs versus the projected costs associated with commencing—or ending—a 3PL partnership. Sufficient due diligence is exercised in partner selection. Nevertheless, it’s vital to avoid assumptions.
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