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LEAD LOGISTICS PROVIDER

Definitions
 3 PL : A 3PL operates or manages a specific node of the supply
chain, such as a warehouse

 LLP : An LLP executes and/or manages multiple nodes or networks

 4 PL : A 4PL sits on top of these networks and acts as the overarching


entity. It identifies what nodes and networks should look like and
who should manage them, then establishes the processes and
governance for each supply chain node
 The terms 4PL and LLP are used interchangeably since there is a very
marginal or no difference between the two
3PL VS 4PL/LLP
KEY RESPONSIBILITIES OF LLP
 Optimize supply chain operations
 Coordinate suppliers
 Integrate supply chain technologies
 Synchronize inbound logistics and outbound logistics flows
 Model and manage distribution networks
 Aligns customers, 3PL’s and service provider to provide visibility
ensuring seamless supply chain services, improved customer service,
managing exceptions, and removing costs and inefficiencies
VALUE CREATION

 STRATEGIC : Through reduced complexity, better visibility and


control, Flexibility and sustainability

 FINANCIAL : Through increase of savings potential, improved


revenues and ongoing continuous improvement projects

 COMMERCIAL : Through creation of a win-win partnership with the


customer
CUSTOMER BENEFITS
Cost reduction
1) Continuous
improvement of SC
n/w design Managing complexity
2) Reduction of 1) Complete control over
inventory and complex SC through
capital cost better visibility
Sustainability 3) Improvement in 2) Insights for improved
planning and cost control and reliability
1) Improved waste through insights received
management visibility
from control tower
2) Reduction in carbon 3) Modular and innovative
footprint services

LLP Performance
improvement
1) Better cost
Growth visibility
Risk Mitigation 1) Retention of 2) Better planning
1) continuous customer through 3) A single point of
monitoring through better customer contact
dashboards service
4) All processes KPI
2) Faster reaction 2) A sustainable driven
time to handle issues and resilient
supply chain
creation
TECHNOLOGY CAPABILITIES

DATA VALIDATION
FLEXIBILITY AND
(Adapting to customer’s STANDARDISATION VISIBILITY ACROSS
unique requirement and (Capability to translate the THE SUPPLY CHAIN
rapidly adapting to data received from partners
change) into terms the customers
system can understand)

ROBUST REPORTING
EXCEPTIONS AND ANALYTICS
MANAGEMENT (Has a robust
(Robust Exception customizable reporting
management and alerting capability that goes
capabilities) beyond simple ”canned”
reports)
FROM 3PL TO LLP

 From an enabler to a partner


 Standard and flexible end to end tech platform
 From focussing on commission to mutual value creation
 Scalable and modular systems
 Strong data analytics capability

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