The evolution of the supply chain outsourcing concerning the fourth party logistics outsourcing has been widely accepted business practice. For example, many corporations are currently intending to outsource from only one partner. The partner can access, design, build and measure integrated and comprehensive supply chain solutions on behalf of these corporations. In line with (Schönsleben, 2016), the fourth party logistics provider can gather and manage all resources, an organization’s technology, supply chain and its providers. In addition, with virtual logistics, aspects of physical and information logistics operations are addressed separately. For example, the ownership and control of resources is handled either through the internet or intranet.
Activity 1: Assessment Phase
It is now four years working in military, and it is a great experience seeing how the incorporation of fourth party logistics has aided in managing the supply chain logistics. It has identified an experienced and reliable fourth party logistics provider who has re-designed the approach the organization manages the logistics process. The military has established centralized contact with the client. The fourth party logistics takes the full control for logistics operations, and it has transformed the whole supply chain. By embracing the fourth party logistics, its solution has facilitated the military’s process for outsourcing, reduced costs incurred and the management is motivated by its application.
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Activity 2: Improvement Phase
Currently, logistics constitutes a necessary and demanding task in the supply chain, but every organization would obtain a great value when it incorporates a fourth party logistics partner (Grawe, Autry & Daugherty, 2014). Therefore, I am strongly convicted that the military could effectively use services of the fourth party logistics by not viewing the 4PLoutsourcing as a pure cost reduction strategy. On the other hand, by adopting the fourth party logistics plan, it would bring various preferred perspectives, experience and technology to full utilization.
Grawe, S. J., Autry, C. W., & Daugherty, P. J. (2014). Organizational implants and logistics service innovation: A relational social capital perspective. Transportation Journal , 53 (2), 180-210.
Schönsleben, P. (2016). Integral logistics management: operations and supply chain management within and across companies . CRC Press.