3PL and 4PL outsourcing. What makes our consultants unique?
3PL and 4PL outsourcing refer to the outsourcing of logistics operations. 3PL refers to using Third Party Logistics and 4PL refers to using Fourth Party Logistics.
The main advantage of outsourcing some or all of these functions is to enable the company to focus on the things it does best – its core competencies.
3PL will focus on physical logistics service providers, for example, warehousing and transportation. In this arrangement, the third party will take ownership of all of the logistics services and carry them out on behalf of the company.
4PL takes it one step further. It will put all the logistics functions in the hands of a single logistics specialist, who will manage, plan and optimise the customer’s supply chain.
The scope here is extensive, potentially covering order management, inventory and demand planning, internal warehouse process and systems and transport. Other services might include financial and direct customer services, providing key data and also state of the art IT solutions.
Of course, this is only an overview and 4PL goes much deeper. Essentially the aim is to optimise efficiency, reduce supply chain costs and improve service performance.
Bisham Consulting: 3PL outsourcing and 4PL outsourcing experts.
How our logistics models and outsourcing consultants can help to add value.
At Bisham, our 3PL and 4PL outsourcing services have one very clear objective. We believe the priority is to ensure a healthy return on your investment whilst maintaining customer service levels.
We specialise in strategy, evaluation and tender process management.
Our knowledge is based on hundreds of procurement and logistics contracts as former Commercial and Operations Directors. So as 3PL and 4PL Outsourcing Consultants, we can now secure superb deals and incredibly effective results for our clients. We believe that using a company like us to outsource will result in finding the right logistics partners with correctly structured commercial deals. This will translate into improved financial returns for your business.
Bisham Consulting provides specialist expertise and resources.
Usually, this is in those areas where a client may not have the knowledge, the capital or the time to do it themselves.
As mentioned earlier, it also means the company can focus on its core competencies. So our focus is to establish precisely what you need to move you from where you are now to where you want to be.
To achieve this we will work very closely with your key stakeholders. We always take an interactive approach to ensure we are building on firm foundations, which reflect accurately the existing situation in your business.
So, we believe we can deliver major improvements that will quickly impact on your bottom line. From recent projections, 3PL procurement benefits of 5%- 15% have been achieved and for 4PL outsourcing longer-term savings of 20 – 25% have been identified.
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Supply Chain Solutions: What our logistics process experience means for you.
We offer a range of services from:-
- Outsourcing management strategy development.
- Assisting with tender specifications, selection and evaluation.
- Contract negotiations and implementation management.
Tasks include:-
- Tender management process to improve speed.
- Data collection and validation so you get better accuracy. It’s hard to manage the things you know about. It’s even harder to manage the things you don’t know about. Accurate data puts you in control. Using that data wisely impacts immediately on the company’s performance.
- Evaluation of operating and capital costs and service performance. This is a critical element in the assessment process, most importantly because it means better order fulfilment and bigger profits.
- We always ensure there is a genuine cultural fit between the contractor and the client.
- Getting a competitive advantage is everything. Small improvements on the margin can quickly lead to massive benefits. If you are just 1% better than the competition, it will translate into far more than a 1% increase in business.
3PL outsourcing and 4PL outsourcing. So what are the client benefits?
SAVE TIME: Our practical experience operating on both sides of the industry eases the path to a workable outsourcing management solution.
IMPROVED BUSINESS FOCUS: By outsourcing supply chain management to us you are left to focus on your core competencies.
BETTER STRATEGY: We specialise in providing long-term solutions that improve all aspects of the supply chain. Bisham can help you decide what you need (the Strategic Decision). We identify who might collaborate with you and provide the service (Knowledge of the Market Providers). Finally, the all-important RFI (Request for Information) process.
VISIBLE RESULTS: We then help you to structure the tender for the services. We manage through the Procurement (ITT process) and build and negotiate a workable contract.
SAVE MONEY/INCREASE PROFITS: Setting up 3PL and 4PL outsourcing contracts that will genuinely work requires both focus and attention to detail. It’s well worth it. That’s because the results will impact almost immediately on company profits. The cost-effective savings are both significant and measurable. We have typically measured cost savings of up to 25%.
SHARED EXPERIENCE FOR BETTER INVENTORY MANAGEMENT: You get all the benefits of our expertise. Bisham has Directors and Consultants with 30 years of 3PL and 4PL experience in successfully establishing and implementing outsourcing contracts. So you know you’re in very safe hands. We know we can deliver the results you are looking for.
CASE STUDY
We reviewed an existing European distribution operations and inbound supply chain and bid these services out to a 3PL with a view to improving service levels, management information and cost reductions if possible. Read more here
