The Art of 4PL Procurement Excellence

Fourth-party logistics (4PL) procurement is now a buzzword in the logistics industry. The process of 4PL procurement involves the outsourcing of a logistics provider to manage and optimize all aspects of a company's supply chain. The provider is responsible for developing strategies, implementing processes, and overseeing the performance of the supply chain. In addition, the provider ensures that all stakeholders in the supply chain are operating efficiently and effectively, providing timely information and feedback to all parties involved. The goal of 4PL procurement is to streamline the entire supply chain, increase visibility, and minimize operational costs. With the rapid evolution of supply chain technology, 4PL procurement offers valuable services to companies seeking greater efficiency and cost savings in their logistics operations.

Fourth-Party Logistics (4PL) Category Overview

The 4PL category is anticipated to grow at a CAGR of 6.9% from 2023 to 2030. North America accounts for the largest share. Factors such as the increasing growth in online shopping and the e-commerce sector, the rising need for efficient warehouse management systems, automated order fulfillment, inventory and returns management systems, and enhanced post-purchase and payment systems are driving the growth of this category. One of the key trends is the increasing use of robotic picking arms and vision systems in large warehouses to reduce errors and boost productivity.

For example, many 4PL companies are using robots to pick and pack orders, while Automated Guided Vehicles (AGVs) are being used to move goods around warehouses and large distribution centers. Collaborative robots (cobots) are used for lifting heavy-duty operations and repetitive tasks. Many cobots are also equipped with IoT sensors that can monitor the health, blood pressure, and temperature of warehouse workers. In the technology space, cyber 4PL is the latest emerging trend. Cyber 4PLs are specialist logistics providers that offer multiple systems integration, adaptive digital platforms, and advanced analytics in addition to supply chain consultancy solutions. Their intellectual property is the mix of assets with software algorithms that they can deploy across the supply chain to effectively generate critical insights.

Order your copy of the Fourth-Party Logistics (4PL) Procurement Intelligence Report, 2023 - 2030 , published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Medical Writing Procurement Intelligence Report Scope

The Medical Writing category is expected to have pricing growth outlook of 6% – 10% (annual) from 2023 to 2030, with below pricing models.

  • Cost plus pricing model
  • gain share pricing model

Supplier Selection Scope of Report

  • Cost and pricing
  • Past engagements
  • Productivity
  • Geographical presence

Supplier Selection Criteria of Report

  • Service offerings (end-to-end services, warehousing, transportation, shipping, distribution, packaging)
  • technical specifications
  • operational capabilities
  • regulatory standards and mandates
  • category innovations
  • others

Medical Writing Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

  • Market Intelligence along with emerging technology and regulatory landscape
  • Market estimates and forecasts from 2023 to 2030
  • Growth opportunities, trends, and driver analysis
  • Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
  • Porter’s 5 forces
  • Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
  • Engagement and operating models, KPI, and SLA elements
  • LCC/BCC analysis and negotiation strategies
  • Peer benchmarking and product analysis
  • Market report in PDF, Excel, and PPT and online dashboard versions 

Medical Writing Procurement Cost and Supplier Intelligence

Companies generally adopt a cost-plus or a gain-share model pricing while engaging with 4PL service providers. The cost-plus model is a pricing strategy where the 4PL service provider charges the client for the actual costs incurred in managing the logistics operations, along with an additional markup or fee. On the other hand, the gain-sharing model is a collaborative pricing approach where the 4PL and the client share the benefits or savings achieved through improved supply chain performance or cost reductions. The choice between the models depends on specific requirements and preferences.

In the European region, in 2022, road transportation prices have increased by 10 - 15% due to soaring fuel costs, high inflation, the global supply chain crisis, and a tight supply of goods. Since 2021, fuel prices have increased significantly in Germany, Italy, the U.K., and France which have in turn impacted transportation and 4PL service costs. For instance, in Germany, diesel prices in Q3 2021 increased by 38% compared to 2020. Similarly, during the same period, diesel prices in France, Italy, and the U.K. increased by 23.5%, 20.6%, and 26.6% respectively. Road transport prices are also getting impacted by truck shortages and labor shortages amid very high demand for trucking services. For instance, in Spain, there is a shortage of 10,000 and 15,000 professional drivers in Spain. In France, there is a shortage of between 40,000 - 50,000 drivers and Germany lacks 65,000 drivers.

List of Key Suppliers

  • XPO Logistics
  • DHL Supply Chain
  • UPS Supply Chain Solutions
  • DB Schenker
  • CEVA Logistics
  • GEFCO Group
  • DSV Panalpina
  • Geodis
  • H. Robinson
  • FedEx Corporation

Browse through Grand View Research’s collection of procurement intelligence studies:

Liquefied Petroleum Gas (LPG) Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Vaccines Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape) 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions 

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