logistics organisation orientation
3PL (Third-Party Logistics):
Involves outsourcing supply chain logistics activities to an external provider
Services include transportation, warehousing, inventory management, order fulfillment, and sometimes freight forwarding
Example: DHL, FedEx
4PL (Fourth-Party Logistics):
A strategic partner that manages the entire supply chain, integrating and coordinating multiple 3PLs.
A 4PL acts as a single point of contact and often does not own physical assets, focusing instead on supply chain design and management.
Example: Accenture Supply Chain Solutions.
Process-Based Strategy
This strategy focuses on improving and streamlining internal processes to gain a competitive advantage
It emphasizes efficiency, cost reduction, and consistency by optimizing workflows, automating tasks, and eliminating waste
Common in industries where operational excellence is key
Market-Based Strategy
A strategy built around understanding and meeting the needs of customers and market demands.
It focuses on analyzing competitors, customer preferences, market trends, and creating products/services that cater to those insights.
Includes tactics like pricing, branding, and customer segmentation to attract and retain customers
2PL (Second-Party Logistics)
Refers to a company that owns and operates transportation or warehousing assets to provide logistics services
The focus is on executing specific transportation or storage tasks
Channel Information-Based Strategy
This strategy leverages data and information from distribution or sales channels to make better business decisions.
Involves gathering and analyzing data from wholesalers, retailers, e-commerce platforms, and other channels to optimize inventory, pricing, marketing, and customer targeting
Example: Using sales trends from online platforms to adjust product offerings in physical stores.