If you are thinking to launch your start-up then by this time you might be already aware that logistics is going to be an important part for your startup business. With this, you might have understood that through proper management of the logistics you can save a lot for your startup business. In fact, this is going to be extremely important for your startup business. When you are going to decide about the logistics you might be wondering if a 3PL Logistics Company will be the best option or you should opt for 4PL logistics services. You have to make a decision quite fast,as you have to select a logistics firm as soon as possible. For a startup business, handling the goods transportation along with several types of industrial products could be extremely challenging. Primarily, owing to the fact that business is not experienced enough, and it is yet to set its own trends and patterns. The logistics management of a company directly impacts its financial growth or overall revenues.
For a startup company, it is always advisable that it should engage a logistics company that provides “4PL logistics services”, to manage its warehousing as well as distribution. 4PL stands for fourth party logistics. 4PL could be described as a professional service that is purchased by companies for availing multiple types of logistic services. 4PL can organize as well as streamline the overall supply chain process of a particular company, by bringing capabilities, resources, and the technology on a single platform. 4PL based logistics services specifically concentrates on the key functions, that is associated with the supply chain process of the company. This includes some of the key functions as listed below:
- Materials Handling
- Demand Fulfilment
- Designing Logistics Network
- Planning product supply/demand
- Executing product supply/demand
Keeping in the mind the above functions, you can see that 4PL logistic services covers lot of functions, which are still not covered by the 3PL logistic services.
If you have a startup business or starting startup business, the most important thing for you will be to build a reputation in the market. Keeping the good reputation in mind, you as a business owner will always want, that your goods are delivered to the recipients safely, you will also want the goods to be delivered on time. The 4PL logistics service provider plays an important part in this, where the service provider ensures safer as well as on-time delivery of goods to the recipients. This will establish your commitment towards your clients. At the end of the day, will definitely help in building your reputation in the market. The 4PL logistics service provider supervises the warehouse. He will ensure that there is a seamless flow of goods as well as services, throughout the supply chain network. This actually saves your time and maximizes your trade benefits. 4PL logistic services are much more cost effective as well as efficient in faster movement of goods in the market, when we compare it to 3PL logistic services. Faster movement means more supply and more benefits.
The 4PL logistics service provider, simplifies your company’slogistics management by becoming a single point of contact (SPOC) between you (client) and all the other logistics provider who operates the supply chain for you. It efficiently manages various aspects of the supply chain, while you can concentrate solely on your startup business. You don’t have to take the headache of managing transport or warehouse operations, or even coordinating other services like packaging and freight forwarding.The 4PL logistics service provider will manage it for you and will act as a single point of contact for you. Again, this is something which you will not get from a 3PL logistic services providers.
Also, with the help of 4PL Logisticsservices, one lower the transport cost since 4PL logistics services provide you the warehouse space along with the transportation. Another key reason why you should choose 4PL over 3PL is, 4PL is much more efficient in logistics management along with being transparent. It simply abstracts business from the supply chain management.