Supply Chain Solutions NZ


4PL Logistics Vs 3PL Logistics


*The Emergence of 2PL

In the era that preceded the 1970s, the market was dominated by large players and heavily regulated. So if you wanted to transport material or supplies from one place to another, businesses had to rely on the railway system. This essentially involved dropping off the goods at one railhead and asking the other party to pick it up at the other railhead. These contracts to transport material involved two parties and hence the term 2PL.

*The Growth of 3PL

In the 1970's, Intermodal Marketing Companies (IMC's) sprung up as a result of deregulation. They were able to accept shipments from shippers and tender them to carriers. With this, the shippers became the 3rd party to the contract. Thus, the term 3PL was coined.

*The New-Age 4PL Model

With the advent of the new-economy, the need to merge the right kind of services and infrastructure was felt. And this gave rise to the 4PL Model. 4PL was a term registered as a trademark by Accenture and it was defined as, “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 4PL Model lays a strong emphasis on unlocking value within the supply chain. This involves choosing the right type of suppliers who have the ability to offer you tailor-made solutions. As compared to the 3PL model, a 4PL model is constantly evolving and embracing challenges of the new-economy. Moreover, as compared to the 3PL model, 4PL offers clients competitive pricing and improved margins.

We offer you the complete solution.