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Fourth Party Logistics (4PL) Pulls the Threads Together
Fourth Party Logistics, or 4PL, is about managing the logistics function to ensure that optimum use is made of the third party logistics (3PL) chain. The Value Group is happy to have Desiree Langley and her team of 4PL specialists managing the 4PL department.
“Value’s 3PL solutions incorporate transport, line-haul, truck rental, materials handling equipment rental, warehousing, bulk freight movement, clearing and forwarding, and express movement of parcels,” says Desiree. “The 4PL function integrates these offerings to ensure the right product arrives at the right destination, in the right quantities, in the right condition, at the right time.”
By outsourcing the logistics and supply chain functions to an expert 4PL services provider, the client company can concentrate on its core business, for example manufacturing, and gain competitive advantage from having a more intense focus.
“In the highly competitive business of supply chain services, the key to success is honing efficiencies”, says Desiree. “We constantly streamline our processes and are able to continue improving the services we offer the client. Improving efficiency can incorporate many techniques such as identifying shorter routes for cross-docking and details like putting faster workers in different areas or smaller equipment in narrower aisles.”
"In addition, and very importantly,” says Desiree, “as part of the diversified Value group with its national footprint, the 4PL department is able to take advantage of economies of scale, for example by consolidating product types, by sharing part-loads and taking advantage of back-hauls. Having a wide bouquet of in-house services and products to call upon, we can work on bulk rates, which impact costs, and savings can be passed on to our customers.”
Value’s infrastructure includes a fleet in excess of 4 500 vehicles and 200 000 m² of warehousing nationally, an integrated IT network, labeling and bar-coding facilities, sophisticated routing and scheduling, constant vehicle tracking and management, and sophisticated security.
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