The model

What is a 4PL operator

A 3PL runs one slice of logistics. A 4PL orchestrates the whole chain: it contracts, integrates and holds the other operators accountable on behalf of the shipper.

The ladder

From 1PL to 4PL, what changes is who answers for the whole

  1. 1PL

    The company ships its own freight

    Own fleet and own people. Every logistics problem becomes a production problem.

  2. 2PL

    You hire transport

    A carrier moves the load from one point to another. Coordination stays on your desk.

  3. 3PL

    You outsource execution

    An operator stores and moves. Each operator sees only its own slice of the chain.

  4. 4PL

    ILC orchestrates the whole chain

    ILC does not compete for freight with your carrier. It sits on your side of the table, integrates every link into a single management environment and answers for the result of the chain.

When 4PL pays off

  • Several logistics providers and nobody with a view of the whole
  • Chain information arrives by spreadsheet, e-mail and phone
  • Material is missing on the line even with stock in the system
  • You cannot compare your suppliers by a single criterion
  • Logistics cost keeps growing and you cannot point to where

When you do not need it yet

  • The operation is a single flow, simple and predictable
  • You have one carrier and it serves you well
  • Volume does not yet pay for a dedicated management structure

ILC says so in the first conversation. There is no interest in selling a structure your operation cannot sustain.

In practice

A 4PL only truly exists when there is a single panel

Coordinating without data is just a meeting. Web service integration puts supplier, carrier and industry looking at the same number, at the same time.

See the technology behind it

Illustration of the Portal Integrator demand management screen. Sample data.

Assessment

Find out whether your chain already calls for a 4PL

In one conversation ILC maps how many providers you manage, where information gets lost and what that costs.

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