REPORT: EUROPE IS MOVING TOWARDS 4PL LOGISTICS PARTNERSHIPS
European companies are moving towards partnerships with "fourth party
logistics" providers, according to a report researched by KPMG.
The report, "Transition to 4th Party Relationships in Europe," said that the new
fourth party logistics partnerships typically cover a much wider range of activities and
larger geographical area than more traditional third party arrangements.
"A key consequence of that development is that freight transport and
logistics service companies will increasingly be required to develop new capabilities in
order to add value to such partnerships," KPMG said.
A 4PL partnership, says the KPMG Transportation & Distribution report,
typically has the following characteristics:
* It is a separate organization and is often established as a joint venture or through a
long-term contract between a shipper and a 4PL provider;
* It acts as a single interface between the shipper and multiple transport and logistics
companies;
* And the 4PL provider manages the operational, tactical and strategic activities of the
shipper’s supply chain.
KPMG Transportation & Distribution manager Peter Magill said that
European shippers continue to focus on the integration of their pan-European and global
supply chains.