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Foutr Pah tryLtosig ics: The Evolut ion of Supp Clyh ...

: The Evolution of Supply Chain OutsourcingFourth Party Logistics: The Evolution of Supply Chain OutsourcingNIls Peterse-Business : The Evolution of Supply Chain OutsourcingOutline1. Outsourcing: Third Party LogisticsW hy outsourcingO utsourcing logistics functions, but which?2. Fourth Party Logistics (4P L)D efinition Example3 types of : The Evolution of Supply Chain OutsourcingOutline3. Technology in the next generation of Supply Chain Outsourcing4. Supply Chain Value Proposition Revenue Enhancement Operating Cost ReductionWorkingCapital ReductionFixed Capital Reduction5. Potentials and : The Evolution of Supply Chain Outsourcing0%10% 20% 30% 40% 50% 60% 70% 80%Reduce Operating CostsImprove Customer serviceGain resources not availableIncrease productivity and efficiencyImprove company focusMake capital funds availableShare risksAdvantages expected from outsourcing1.

www.hiplus.de 4PL: The Evolution of Supply Chain Outsourcing Foutr Pah tryLtosig ics: The Evolut ion of Supp Clyh ianOustoinugcr NIls Peters e-Business Seminar

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Transcription of Foutr Pah tryLtosig ics: The Evolut ion of Supp Clyh ...

1 : The Evolution of Supply Chain OutsourcingFourth Party Logistics: The Evolution of Supply Chain OutsourcingNIls Peterse-Business : The Evolution of Supply Chain OutsourcingOutline1. Outsourcing: Third Party LogisticsW hy outsourcingO utsourcing logistics functions, but which?2. Fourth Party Logistics (4P L)D efinition Example3 types of : The Evolution of Supply Chain OutsourcingOutline3. Technology in the next generation of Supply Chain Outsourcing4. Supply Chain Value Proposition Revenue Enhancement Operating Cost ReductionWorkingCapital ReductionFixed Capital Reduction5. Potentials and : The Evolution of Supply Chain Outsourcing0%10% 20% 30% 40% 50% 60% 70% 80%Reduce Operating CostsImprove Customer serviceGain resources not availableIncrease productivity and efficiencyImprove company focusMake capital funds availableShare risksAdvantages expected from outsourcing1.

2 Outsourcing: Third Party LogisticsWhy : The Evolution of Supply Chain Outsourcing2. Fourth Party LogisticsD : The Evolution of Supply Chain Outsourcing4PL only work wirth interlectual capital and computersBird s eye view of supply chainto seek integrationto minimize inventory coststo improve efficiencyand to reduce lead times2. Fourth Party : The Evolution of Supply Chain OutsourcingSynergy Plus operating modelSolution Integrator modelIndustry Inovator model2. Fourth Party Logistics3 Types of 4P : The Evolution of Supply Chain OutsourcingPartnership between 4PL 3PL to market supply chain solutionsCapabilities and market reach of both partners are combinedThe 4PL provides: technology, supply chain strategy skills, capability to go to market, and program management expertise2.

3 Fourth Party Logistics3 Types of 4P LSynergy Plus operating : The Evolution of Supply Chain OutsourcingCore Model: 4PL operates comprehensive supply chain solutions for a single encompasses resources, capabilities and technology of the 4PL with complementary service providers2. Fourth Party Logistics3 Types of 4P LSolution Integrator : The Evolution of Supply Chain Outsourcing4PL develops and runs a supply chain solution for multiple industry players with focus on sychronization and collaborationthis model provides the greatest benefits, however it is complex and a great challange2. Fourth Party Logistics3 Types of 4P LIndustry Innovator : The Evolution of Supply Chain OutsourcingOutsourcing logistics functions requires intensified communicationand information exchange between the parties virtual business environment enables companies to optimize forecasting, order processing, production and distribution collaboratively with suppliers and service providers in the sense of integrated supply chain T echnology in the next generation of supply chain : The Evolution of Supply Chain OutsourcingThe key distinction between 4PL and current approaches to supply chain outsourcing is a unique ability to deliver value to client organizations across the entire supply Supply chain value.

4 The Evolution of Supply Chain OutsourcingSupply ChainValue EnhancementProfitabilityEnhancementInves ted Capital ReductionRevenue EnhancementOperating Cost ReductionWorking Capital ReductionFixed Capital Reduction4. Supply chain value : The Evolution of Supply Chain OutsourcingSupply ChainValue EnhancementProfitability EnhancementInvestedCapitalReductionReven ue EnhancementOperating Costs ReductionWorking CapitalReductionFixed CapitalReductionDriven byenhanced product quality,availability andimproved cutomer serviceRevenue EnhancementWith the 4PL focusing on the entire supply chain dramatic customer service improvements can be : The Evolution of Supply Chain OutsourcingSupply ChainValue EnhancementProfitability EnhancementInvestedCapitalReductionReven ue EnhancementOperating Costs ReductionWorking CapitalReductionFixed CapitalReductionDriven throughoperational efficiencies,process enhancement andprocurement savingsOperating Costs ReductionSavings will be reached through economies of scale by outsourcing the complete supply.

5 The Evolution of Supply Chain OutsourcingSupply ChainValue EnhancementProfitability EnhancementInvestedCapitalReductionReven ue EnhancementOperating Costs ReductionWorking CapitalReductionFixed CapitalReductionRealized throughinventory reductions andreduced order to cash timesWorking Capital ReductionThe proactive use of technology to manage orders throughout the pipeline will minimize the amount of inventory : The Evolution of Supply Chain OutsourcingSupply ChainValue EnhancementProfitability EnhancementInvestedCapitalReductionReven ue EnhancementOperating Costs ReductionWorking CapitalReductionFixed CapitalReductionWill result fromcapital asset transfer andenhanced asset utilization(by shifting the supply chain to the 4PL)Fixed Capital ReductionThis will allow the client to invest in its core : The Evolution of Supply Chain OutsourcingEconomies of ScaleReduced Supply Chain costsIncreased flexibilityCombines the advantages of in- and outsourcingManufacturers can focus on core competenciesImproved customer serviceReduced capital requirements5.

6 Potentials and constrainsBenefitsBenefits of the 4PL : The Evolution of Supply Chain OutsourcingCustomer relationships should not be dismissed on basis of efficiencyStrict functional organization structure hinders integrated Supply ChainsResistance to change the biggest obstacle to implementation of new approachesLoosing sight of original core-concept of SCM due to loss of controll5. Potentials and constrainsProblemsProblems of the 4PL : The Evolution of Supply Chain OutsourcingDiscussionPresentation byNils Peterse-Business SeminarProf. Dr. H. H. SiedentopfUniversity of Applied SciencesHamburgResources soon available >>>next presentatio


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