Manufacturers who use the Fourth Party Logistics (4PL) model of logistics contract with a single external provider to manage and organize their supply chain and logistics. All supply chain management responsibilities fall under the purview of that provider. Warehouses, shipping firms, freight, and agents are all under the partner's authority and management.

The degree of control that 4PL has over supply chain assets sets it apart from 3PL. A greater percentage of assets in 3PL are devoted to a single operation. All assets in 4PL are subcontracted, which means that the company purchases capacity on the open market as needed.

Because the outsourcer does not have the same fixed expenses as those working in a 3PL setting, there may be cost benefits as a result. Additionally, it implies that they are more vulnerable to the forces of the market that affect price, which may lead to higher costs due to capacity restrictions.

Due to 3PL's emphasis on asset ownership, which offers greater stability, there has been a broad trend towards 3PL following three years of supply chain turmoil. However, the 4PL market, which is predicted to reach US$89.95 by 2030, is expanding due to omnichannel shopping, which is being fueled by the pandemic's drive to go online.

The 4PL sector is expanding as a result of the electronic industry's exponential growth. Manufacturers of consumer electronics are drawn to 4PLs because they wish to provide various last-mile options that allow clients to receive dependable doorstep delivery services.

1. A 4PL company: what is it?

An organization that manages the transportation and logistical requirements of other companies and provides a broad variety of services, including supply chain management, warehousing, and distribution, is known as a 4PL logistics provider.

4PL providers have the skills and knowledge to assist companies in streamlining their logistics operations and increasing their bottom line because they are logistics specialists. 4PL providers can frequently offer more economical and effective logistics solutions than what companies could create on their own.

4PL providers will remain crucial in assisting businesses with meeting their shipping and transportation demands as the logistics sector grows in size and complexity.

2. Top 10 List of the Best 4PL Company

2.1 DHL

✔️ CEO: Bok Oscar

✔️ Headquarters: Germany's Bonn

✔️ Workers: 140 000

In order to extend efficiency, flexibility, and cost benefits to the entire end-to-end supply chain, DHL Supply Chain offers what are known as "Integrated Solutions. In an optimized package that ensures supply chain operations are simplified and your business becomes stronger and more efficient, it combines transportation, warehousing, and management services.

2.2 UPS

✔️ President Susanne Klingler-Werner (European)

✔️ HQ: USA's Atlanta

✔️ Personnel: 454,000

As a pioneer in the creation and application of the 4PL business model, UPS Worldwide Logistics has integrated data across its transportation and logistics activities. UPS offers complete supply chain integration and real-time data access, which facilitates strategic decision-making. Our end-to-end services, value-added solutions, and supply chain expertise are designed to scale with growing businesses and help them grow even faster, the company claims.

2.3 Schenker DB

✔️ Jochen Thewes, CEO

✔️Headquarters: Frankfurt, Germany

✔️Workers: 76,000

Lead Logistics, a 4PL product from DB Schenker, is a platform that covers supply chain, freight management, transport management, and 4PL solutions. Bring years of global logistics and 4PL experience to create customized and competitive logistics services for your cross-border supply chain, according to Schenker, their lead logistics engineer.

2.4 Nagel & Kuehne

✔️Stefan Paul, CEO

✔️Head Office: Schindellegi, Schweiz

✔️Workers: 83,000

An integrated ecosystem built on 20 years' experience at maximizing value in our customers’ supply chains and applying these lessons to our service offerings is the 4PL solution that Kuehne+Nagel offers. Certain technologies and core values power our ability to support our customers, according to the ecosystem. ControLOG is the name of the solution, which provides real-time visibility throughout the supply chain to aid in proactive risk mitigation and problem solutions.

2.5 CEVA Logistics

✔️Matthieu Friedberg, CEO

✔️Headquarters: Marseille, France

✔️Workers: 78,000

CEVA is a well-known authority on 4PL logistics. With 750 warehouses across the globe, it provides complete supply chain solutions. It claims that its Contract Logistics segment is built on technology and innovation to deliver dependable and optimized solutions. We will design, execute, and monitor your supply chain strategy to help you keep your promises to your customers, regardless of the complexity and geographical scope," the statement continues.

2.6 Logistics XPO

✔️Mario Harik, CEO

✔️HQ: USA, Connecticut

✔️Workers: 38,000

XPO is leading the way in the development of technology-enabled truckload, less-than-truckload, truck brokerage, managed transport, last mile, and freight forwarding service company in Europe. The business customizes its solutions to meet the demands of individual clients in a variety of consumer, commerce, and industrial sectors, as well as exclusive events. With 554 locations, 38,000 employees, and its operations in Europe, XPO services over 48,000 customers.

2.7 Panalpina DSV

✔️Jens Bjørn Andersen is the CEO.

✔️Headquarters: Hedehusene, Denmark

✔️Personnel: 70,000

Lead Logistics, DSV's 4PL solution, was introduced in 2019. Non-asset-based, neutral supply chain orchestrator of transport services is how the platform describes itself. Across all modes, regions, and currencies, supply chain design, implementation, and management are supported by the modular solution's cloud-based technology. Both DSV and other suppliers offer physical transport services.

2.8 Geodis 

✔️Marie-Christine Lombard, CEO

✔️Head Office: Levallois-Perret, France

✔️Personnel: 41,000

Geodis introduced Upply, a multimodal digital freight marketplace, in 2018. According to the statement, the solution meets the demands of an increasingly fast-paced supply chain market and pioneers a more efficient and transparent supply chain market. Shippers, forwarders, and other logistics participants are invited by Upply to select a method of transportation, then specify the quantity of pallets, containers, or weight of the consignment, as well as the desired price per kilogram.

2.9 CH Robinson International

✔️CEO in interim: Scott Anderson

✔️Headquarters: Minnesota, USA

✔️Personnel: 19,000

TMC, a division of CH Robinson Worldwide, serves as a 4PL. With a single platform dubbed Navisphere, the system links networks, automates routing guides, and tenders freight. TMC improves performance, controls carriers, and lowers exceptions (service abnormalities).

2.10 Accenture

✔️Julie Sweet, CEO

✔️Office: Ireland's Dublin

✔️Workers: 537,000

Accenture assists clients in developing 4PL operational models, which typically consist of a network of control towers that 4PL suppliers manage local, national, and international transportation. These suppliers handle all transportation-related tasks on behalf of the customer by utilizing their in-depth knowledge of local markets and logistics.

Related post:

• Top 10 types of cargo vessels in the world
• Top 15 largest ocean freight companies in the world

3. What benefits come with working with a 4PL provider?

Businesses can gain a lot from working with a 4PL provider, including lower costs, feature-rich services, and more flexibility. A 4PL supplier combines conventionally outsourced supply chain services into a suite of specialized tactics, instruments, and technology designed to increase logistics effectiveness. This enables customers to enjoy a more seamless and economical shipping cycle. Furthermore, in the uncommon event that a problem does arise, 4PL providers have a committed support staff that cultivates strong connections with clients and can swiftly identify areas for improvement. In addition to improving supply chain visibility, more flexible administrative procedures also lower labor costs by freeing up staff time for strategic initiatives rather than administrative responsibilities. In conclusion, using a 4PL provider can save retailers time, money, and effort while giving them peace of mind regarding their particular supply chain requirements.

4. Why you should work with a 4PL provider?

There are a lot of various moving components in logistics. There are many details to monitor, ranging from order fulfillment and packaging to transportation and warehousing. You might discover that you require assistance with logistics management as your company expands. 4PL logistics services can help with that.

In that they handle the complete logistics process on behalf of their clients, 4PL logistics providers are comparable to third-party logistics firms. Working with a 4PL allows you to delegate the logistics to someone else and concentrate on managing your business..

Of course, using a 4PL has advantages and disadvantages. On the one hand, you'll get access to a group of professionals who can assist in streamlining your logistics processes. However, there's a chance you'll lose some control over your logistical procedures, and you'll have to account for administrative expenses. In the end, the choice of whether or not to use a 4PL should be determined by your unique business requirements.