Logistics has undergone a constant evolution in recent decades and logistics operators have kept pace with this transformation, adapting to the changing needs of companies. In this context, the concept of "integrated logistics" emerges, a holistic perspective demanded by companies to optimise and unify all their processes, and for which 4PL operators respond with a global portfolio of end-to-end logistics solutions for their supply chain.
What is integrated logistics?
Integral logistics refers to the unification and coordination of all logistical processes, which requires an operator that is capable of carrying out this task of integration, management and supervision of all logistical activities, even if these are carried out by third parties.
This concept goes far beyond the simple management of transport or logistics, to encompass a global perspective, which includes all needs, from storage, inventory, transport operations, customs or any added service required by the company to the delivery of the product to its client.
5 advantages of integrated logistics
- More efficiency: by having a unified view of the entire chain, bottlenecks, redundancies and inefficient processes can be identified and eliminated.
- Lower costs: the optimisation of resources and processes leads to a significant reduction in operating costs.
- Better service: integrated logistics management ensures faster and more accurate deliveries, resulting in higher customer satisfaction.
- More flexible: in a constantly changing market, the ability to adapt quickly to new demands is essential. Integrated logistics enables this adaptability.
- Greater control: the integration of systems and processes provides complete visibility of the supply chain in real time.
Which operators provide comprehensive logistics services?
The 4PL (Fourth Party Logistics) model first emerged as a concept in 1996 by the consulting firm Accenture (then Andersen Consulting) to refer to the complete outsourcing of logistics operations, taking on greater responsibility than that assigned to 3PL operators.
While the latter focus on the execution of specific logistics tasks, a 4PL acts as a comprehensive manager of the entire supply chain and is therefore also known as a "control tower".
In other words, they have a panoramic view that allows them to supervise the course of all operations from different locations, which is why the international dimension of the operators becomes a differentiating factor. It is this global management that allows companies to have a clear vision and total control of their logistics, from production to final delivery.
In addition, 4PL logistics also requires the implementation of innovative IT systems to digitise the supervision of the supply chain. A 4PL operator provides the company with a technological leap towards the so-called "Logistics 4.0", with a portfolio of specific solutions to optimise the management and operation of logistics processes, the monitoring of key parameters and data to improve results or achieve a more transparent network, among many other tools.
What are the benefits of 4PL operators?
- Unified and centralised management: 4PL operators act as a single point of contact and access for all transport activities managed throughout the supply chain. This centralisation simplifies logistics operations and execution, allowing companies to have a single point of contact for all their logistics needs.
- Full visibility and access to data: 4PL operators provide end-to-end visibility into all operations. This not only facilitates real-time monitoring and tracking, but also provides an integrated platform to connect all conventional technology applications and processes. This extended visibility enables deeper data analysis, which in turn aids in better planning and improves the customer experience.
- Agility in planning and execution: Through higher levels of collaboration and integration, 4PL operators enable more agile planning and execution. In an increasingly complex logistics environment, this agility is essential to adapt quickly to changes and challenges.
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Continuous process optimisation: An advantage of 4PL operators is their commitment to continuous improvement and optimisation. Thanks to their holistic view of the supply chain, 4PLs are constantly evaluating and adjusting processes to ensure maximum efficiency. This not only translates into cost savings for companies, but also the adaptability to respond to market changes and emerging customer demands in a proactive manner.
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Flexibility and customisation: each company has unique needs and 4PL operators plan their strategy according to their requirements. They offer tailor-made logistics solutions based on a holistic approach, using advanced technologies to design innovative and efficient solutions. In addition, they provide greater flexibility through better coverage and access to advanced networks, enabling more effective and consistent capacity management.