Third-party logistics (3PL) comes in the form of many different services, but 4PL is the one service encompassing them all.
The benefits of 3PL have been well known for years, but the world is now beginning to wake up to the power of 4PL.
In fact, a 2021 report from Polaris Market Research valued the global 4PL market at almost $US 50 billion, with plenty more growth forecasted this decade.
Recognising this trend some years ago, AFS Logistics has cemented its place as one of Australia’s most trusted logistics management solutions providers, offering both 4PL and 3PL services.
So, what does this mean for AFS’ customers, and indeed for 4PL or 3PL customers worldwide? What benefits can be enjoyed by incorporating these kinds of logistics services?
This blog will discuss each of the main benefits to supply chains and hopefully reveal which of the two is best for your business.
Put Experts in Charge While You Run Your Business
By putting your logistics management tasks in their hands, you can focus on developing your own business’ internal systems and the quality of product you create.
Going one step further in saving you time to run your business, 4PL companies provide a single source of information for you to understand your entire supply chain. This removes the potential need to organise multiple transport or warehouse providers
This holistic 4PL perspective gives them the ability to connect the supply chain pieces more efficiently, rather than multiple parties having to negotiate and interconnect their businesses.
The end result? Your product gets delivered quicker and you get more time to run your business.
Reduce Costs
Both 4PL and 3PL businesses can help to reduce the cost of supply chain management in their own ways.
3PL providers will often have a network of connections and industry partners around the world which can provide convenient packaging, warehousing, or delivery services at the best price.
A shared 3PL warehouse, for example, can ensure you’re only paying for the space you need and not renting out entire warehouses that sit half empty.
4PL providers can save you money by finding the most efficient route along the supply chain from your facility to the end-user. This is the benefit of 4PL’s total visibility over the entire chain.
Their control over every step of the process may allow them to bundle services together and give you a reduced quote, giving them more business while freeing up your cash flow.
Cross Borders with Ease
Your business might be well-established in Australia and New Zealand, but breaking into the global marketplace can be hard enough without the support of a professional logistics provider.
There are myriad regulations to satisfy, tariffs to pay, and jurisdictions to cross as you deliver to the world. You may be fully aware of these obstacles, however, that doesn’t stop them from taking time to overcome.
With a professional logistics provider, these obstacles are managed behind-the-scenes, improving your delivery times and increasing your global audience.
By increasing efficiencies in global delivery and removing some potential costs, your company can offer more competitive pricing and quite literally broaden your horizons.
So, Which Is Right For You?
There is no correct answer and each business will suit 3PL or 4PL providers for different reasons.
If you’re a growing business, introducing a 4PL to manage your supply chain could be a game changer.
If you prefer to keep control over some of the supply chain and don’t feel the need to outsource it all, 3PL may be for you.
The good news? AFS Logistics is an expert in both, so there will be no need to look anywhere else as you build your supply chain within Australia, New Zealand and around the world.
Get in touch to learn how we can benefit your business.
