Accenture China interprets the fourth party logistics, where is the key opportunity for "super managers"?
- 2018-03-22 12:39
- The fourth party logistics express third party logistics
No express, no online shopping. Express and online shopping have become a pair of "twin brothers" in the eyes of the consumers. Indeed, good experience can make shopping express courier service and the icing on the cake, will make buy buy buy pleasure into the bottom. Just as the express is to the consumer, logistics is not the case for the enterprise, especially the manufacturing and retail enterprises.
For a long time, the third party logistics (3PL), which was spawned by the non main business outsourcing, plays an important role in improving the service level and cost control of enterprises, and is the engine of supply chain operation. But the times have changed, their role is far less than the past, or even can't meet customer expectations.
The fourth party logistics by Accenture first proposed, it is more like business partners, and customers have brought the ability of strategy of the third party logistics coordination, planning ability and experience, and the ability to integrate resources supply, play a comprehensive role set, architects and experts in the field of information integration and resource provider.
Today, we will talk about the "super manager" of the logistics supplier - the fourth party logistics.
One, the fourth party logistics: the "moat" of the enterprise logistics
Today, consumer demand, and constantly improve the industry competition, the talent shortage has brought the development of resistance to the enterprise; and in the enterprise, blindly through reducing the manufacturing cost has been unable to gain a competitive advantage, develop new products or technology needs to invest more time and resources. In this context, enterprises are looking at the logistics field covering the front and rear ends of the supply chain. They expect quick response speed, efficient synergy, high-quality resource allocation and perfect system layout.
Amazon is the leader to transform the modern logistics management system into a core competitive power. In early 1990s, Amazon is through the logistics system optimization, the total cost of operation of the company will occupy 20% of the logistics cost has been cut in half, by lowering the threshold of free shipping, to create prime services and other initiatives to build up their own unique advantages, forming a virtuous circle of logistics support sales, nurturing logistics.
Compared to the more and more obvious disadvantage of the third party logistics, the fourth party logistics (4PL) can be called the integrator of the supply chain. It is not directly involved in logistics operation activities, but is responsible for bringing professional knowledge, system and resources together, providing comprehensive supply chain solutions for customers from logistics. It can break the link between the supply chain, make full use of the platform of information resources integration of various service providers of technology, resources and capabilities, build a link between enterprise logistics and logistics service providers, supply chain planning and operation of a more comprehensive and effective implementation of the program for the enterprise.
In practice, the fourth party logistics should act as a comprehensive role of collective architects, domain experts, information integrators and resource providers.
Fourth party logistics is in line with these qualities, the manufacturing and retail enterprises in the selecion of logistics service provider (LSP) when the six key value drivers - strategy ability and customer collaboration and planning ability and experience, ability to integrate resources supply, operation efficiency and cost, information integration, and service reliability.
Among these factors, the first three abilities are not available to the third party logistics enterprises. They are also the advantages of the fourth party logistics, and they are the key opportunities for their future development.
So, in a comprehensive way, the fourth party logistics is more like a long-term strategic partner with the enterprise, not just a supplier. It can provide a wider range of services and deeper cooperation. It not only provides customized solutions for different customers' needs, but also can share profits in logistics service process with enterprises, or complete data flow provided by the same information system.
Two. How to selec the fourth party logistics
The development of foreign logistics market indicates that if we want to enter the fourth party logistics, logistics enterprises must have strong core competence in one or several aspects and have the ability to enter other fields.
In China, there have been a number of pioneers and a series of pilot operations in the field of the fourth party logistics. In the process of development of the market, the company China or fourth party logistics has the following sources: the third party logistics company, and transformation of the supply chain with professional background and consulting companies, large group logistics team, and has a large data analysis and optimization of supply chain system as the core competitiveness of the Internet logistics company.
The demand side of enterprises in the development of fourth party logistics cooperation mode, it is necessary to selec the partners, based on both fit ability and resources, selec suitable long-term cooperation partners in business objectives, operation mode and organizational culture, management system in all aspects can be matched with each other, to achieve a win-win situation in cooperation.
The screening criteria include the following three levels:
1. strategy layer
based on the positioning of the core competitiveness, the enterprise needs to make the logistics link is the strategic decision of its own and outsourcing. However, no matter what model it is, we need to do a good job of designing and planning the internal and external conditions of the enterprise. It needs to be reminded that not all enterprises are suitable for the selection of the fourth party logistics.
When designing and planning enterprise strategy, the internal conditions include: core competition strategy, operation and transformation capability and operation cost; external conditions include: market customer service demand, logistics provider capability matching, relevant decrees, regulations, risks, etc. These internal and external factors are the key factors that enterprises need to consider fully when they move towards the selection of the fourth party logistics cooperation model.
Accenture has helped Shell to build the fourth party logistics development strategy. This plan focuses on solving the problem of Shell's service level control for the fourth party logistics providers, and focuses on building long-term strategic relationship, so that Shell can introduce the best professional talents, leading innovative means and best industry technology, so as to do well in business development.
The cooperation between Shell and the fourth party logistics provider has finally achieved the following results:
While improving the service level, the loss of assets caused by lack of material is reduced to a maximum, and the risk of supply chain is reduced.
By improving the utilization of logistics assets and the comprehensive supply chain planning, the logistics cost is reduced by 25%.
Through the logistics plan, we can use as little as possible logistics resources to reduce the risk of accident.
Improve the logistics cost and the transparency of the business process.
Through real-time data analysis, Shell can help Shell make faster and more reasonable decisions, so that Shell can better flexibly apply external experts' skills, industry-leading logistics practice experience and advanced technology to meet the needs of business change.
2. mode layer
The mode of cooperation between the enterprise and the fourth party logistics includes simple business cooperation, such as financial information sharing management, profit sharing and joint venture establishment. It needs to agree on the basis of the two sides' identification of business objectives. Most of the four party cooperation models are based on the strategic partnership of long-term mutual trust.
3. support layer
Today, information has become one of the core resources in the enterprise, its security needs to focus on security, especially in the process of cooperation with the fourth party logistics service providers, information flow line must be scientific, reasonable division, clear information sharing permissions, standardize the information flow, neither the disclosure of confidential information, but also to ensure the smooth operation of logistics information flow.
In terms of organization and process, the design of key measurement indicators and assessment mechanisms is defined. On the basis of equality and mutual benefit, the two sides jointly formulate reasonable and effective performance evaluation indicators.
Facing the business environment and customer needs, those supply chain integrators who can realize all kinds of logistics service functions will effectively mobilize and manage all kinds of resources, capabilities and technologies of the organization, provide comprehensive supply chain solutions, and significantly improve operational efficiency.
It is foreseeable that the fourth party logistics supplier, the special "logistics super manager", will be in the next business era.
This article is adapted from the "super manager" of the fourth party logistics - logistics supplier in the essays of envisage "Outlook".
Author: Accenture Management Consulting Director, general manager Huang Xueming, Wen Zhijie, director of supply chain and supply chain and operations consultant Lynn, and logistics industry solutions research institute director Li Jianlong.
Source: top public logistics