4pl Intercafe

Executive Summary:

My job as a logistics consultant would be to explain my client who is the manufacturing company to show the benefits of adapting outsourcing (4PL) for their business needs as this is not only a new generation of logistics management but this will also help them to focus on their core competencies, by outsourcing the non-core activities. Further to this explanation, I would also like to show the pros and cons of its use (4PL) that will help the client to take an appropriate decision.

Key Assumptions:

• It is assumed that our client the manufacturing company does not know what is 4PL as they have the traditional way of doing business.

• It is assumed that Outsourcing or 4PL as it is known is often taking a set of work, tasks, responsibilities or functions and transferring them to an outside service provider.

• 4PL will help our Client to reduce the internal transaction costs and external cost of goods and services, as 4PL focuses on the customer supply chain.

• 4PL companies have greater capability in terms of skills and market knowledge; this is a combination of experience, expertise and knowledge.

• 4PL is a combination of process, technology and process to manage, this will lead logistics provider to bring value and a reengineered approach to the customer’s need.

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Statement of Issues:

The main issue in this case is that the manufacturing company our client has a traditional way of doing business as now our job as a consultant is to explain them what is 4PL and its role in the supply chain?

“A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design build and run comprehensive supply chain solutions”.

The benefits would be that 4PL will lead the logistics provider and bring value and a reengineered approach to the customers need.

A second issue is that it is very important to explain the customer that 4PL will bring a different perspective,...