4PL Services Market Intelligence

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Subscription Benefits:

  • PRO access to New Beroe LiVE*
  • Unlimited updates on the Report*
  • Supplier Watchlist for 3 suppliers*
  • Supplier Shortlisting Tool*

With this purchase you will be subscribed for a 12-month PRO membership to AI Powered Procurement Productivity Suite - Beroe LiVE.Ai

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*These features will be unlocked on the new Beroe LiVE when it launches (Q3, 2020)

Are you looking for answers on 4PL Services category?

Are you looking for answers on 4PL Services category?

  • What are the key trends in 4PL Services category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in 4PL Services industry?
  • How is 4PL Services industry performing?

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Report Coverage

  • Benefits of Engaging with the 4PL 
  • Pros and Cons of 4PL Model
  • Types of Pricing Models
  • Industry Best Practices to Measure Performance in Terms of KPIs

Production Size

Global Production Size/ Capacity

$56. 47 Billion

CAGR

5-6 percent(2020–2025)

Table of Contents

  1. 4PL Services Market Global Market Summary
  2. Executive Summary
  3. COVID-2020 Update and its Impact on 4PL Market
  1. 4PL Market Analysis
  2. 4PL Logistics Model Overview
  3. 4PL Model overview
  4. Roles and Responsibilities –Comparing Logistics Players
  5. Benefits of Engaging with the 4PL
  6. Pros and Cons of 4PL Model
  1. 4PL Sourcing & Pricing Analysis
  2. Types of pricing model
  3. Levels of Control Achieved in 4PL Model
  4. Industry Best Practices to Measure Performance in Terms of KPIs
  5. KPI’s and Performance Measurement
  6. Control Tower Operating Cost Structure
  7. Types of Engagement & Pricing Models
  8. Operating Cost Structure & Payment Period
  1. Innovation and Framework
  2. Industry Trends on Automation,Digitalization and Visibility Solutions
  3. Roles of Latest Technologies adopted in Logistics Industry
  4. Case Study
  1. Purchasing Process: RFP/RFI Questionnaire
  2. Sourcing of 4PL Services: Sample RFP Questions

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4PL Services Global Market Outlook:

Market Growth:

  • Global Market Size: $ 56. 47 Billion (2020)
  • CAGR: 5-6 percent(2020–2025)

Growth Drivers:

The growth of e-commerce, retail sector, and manufacturing sector coupled with the digitalization of infrastructures in the developing economies across the world are driving the adoption for 4PL based services. Positive economic outlook in the developing economies of the world, especially in the APAC region, is augmenting the growth of 4PL services.

Market Analysis – 4PL Industry
In terms of revenue, the global fourth party logistics market was valued at US$ 56,472.1 million in 2019 and is projected to reach US$ 78,981.5 million by 2027; it is expected to grow at a CAGR of 4.5 percent during the forecast period from 2020 to 2027.

Strategic KPI’S

  • Cost to Serve: Logistics spend/ sales revenue
  • Order to delivery time
  • Percentage cost of reduction
  • Working capital reduction
  • Pilferage IErcentage

Benefits of Engaging with the 4PL

Adoption of 4PL business model by a multinational company has lead to freight cost savings in the range of 10–25% through reduction in direct carrier costs through consolidation. The 4PL has helped the shipper in following:

  • Reduction in excessive freight charges
  • Increase in shipment visibility
  • Improvement in service failure rates
  • Decreased communication gaps

Pros of 4PL:

  • 4PL provider has the ability to provide a range of services under one single point of contact, virtually eliminating the internal costs of supporting accounts for warehousing, fulfillment and transportation across multiple vendors. With greater visibility and process efficiency, a 4PL can help reduce logistics cost
  • Value generated such as real time visibility, track and trace, reporting, high level information sharing to the client etc., through outsourcing managed services is higher due to high resource costs
  • 4PL model is more beneficial in operations which are standard and the supply chain network doesn’t change more often. Since the execution services are offered by same provider as management, it is a seamless flow of information as the system is already integrated

Cons:

  • 4PL model is existing across all regions. However due to less complexity in mode(air, ocean and land) usage, standard rules and regulations etc., the model is mostly prevalent in US, Europe, and some countries in Asia such as China, Japan and less adopted in other regions
  • Less visibility as the 4PL players bundle the cost involved in logistic services and management activities; cost savings achieved through each subset of cost parameters in 4PL management is not transparent since both the operations are managed by the same player
  • Clients will be highly dependent on the 4PL player and switching cost is higher providing less control over the suppliers.

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