LogGroup - Spedition und Logistik GmbH - 4PL



4PL-Provider LogGroup – The development

The percentage of the outsourcing has increased continuously. As a consequence the number of the big service providers in logistics has increased, who offer the classical transport service, the handling service, the service in warehouses as well as the value-added services to an established third-party between the customer and supplier. These third-party providers in logistics partially operate and control the whole logistics chain of customers, often with a big part of their own assets, as vehicles and storehouses. In the course of full outsourcing ideas and with the efforts to reduce costs rapidly the planning and functions optimization will be strongly discussed in the company. This discussion leads to 4PL – Ideas of LogGroup. LogGroup as a fourth independent party assumes the optimization, integration and management of the logistics chain and therefore the choice and commissioning of the service provider 3PL also. As a main contactor, LogGroup als 4PL brings the service components of the logistics chain with optimized costs and services together.

4PL-Provider LogGroup – Advantages for the customers

4PL refers to the Best-in-class solutions, independently from own ressources, which are adapted accordingly to customers needs. Consequently there is no compromise solution or restraints due to the rigid structures of the service providers. Systemic ressources lead inevitably to own interests concerning their capacity. Carriers, hauliers and contract logistics providers generally have their own assets ( fleet, storage areas etc…), whose capacity represents a logical objective. LogGroup, as a 4PL service provider makes no pressure upon and chooses the best measures to tailor a package for the customers. The work as a service provider for a lot of customers enables a larger overview about the markets and a very good position concerning the service price in logistics.

4PL-Provider LogGroup – the future

Logistics will develop itself in the next years very strongly having the factor costs as an advantage which makes the difference in the global competition. The experience in the branch today shows that the future markets and future customers will not be winning from the planned products, instead from the supply chains. The best practice companies are right when they adopt increased forms of cooperation for innovation or strategic alliances which can reach a real cooperation management. The concept of LogGroup as ‘Fourth Party Logistics’ (4PL) describes a stage of the special collaboration along the value chain. Until recently our company has been primarily rather rarely because potential customers consider their tasks as endangering core competence activity and therefore see themselves threatened by an unwanted knowledge sharing. The employees in charge of a specific company with vision fade out these points of view and release new innovative steps in the supply chain field.

4PL-Provider LogGroup – Summary

Even though the concept 4PL has been known longer time before, it has not been put actually into practice considerably. Mainly, a reason for this is the service providers existent structure, which often can not satisfy the claim of neutrality sufficiently. Still it worths the expensive search of the appropriate customized provider considering the actual costs pressure