Llp And 4pl Model 375h6h

LEAD LOGISTICS PROVIDER

Definitions 

3 PL : A 3PL operates or manages a specific node of the supply chain, such as a warehouse



LLP : An LLP executes and/or manages multiple nodes or networks



4 PL : A 4PL sits on top of these networks and acts as the overarching entity. It identifies what nodes and networks should look like and who should manage them, then establishes the processes and governance for each supply chain node



The 4PL and LLP are used interchangeably since there is a very marginal or no difference between the two

3PL VS 4PL/LLP

KEY RESPONSIBILITIES OF LLP 

Optimize supply chain operations



Coordinate suppliers



Integrate supply chain technologies



Synchronize inbound logistics and outbound logistics flows



Model and manage distribution networks



Aligns customers, 3PL’s and service provider to provide visibility ensuring seamless supply chain services, improved customer service, managing exceptions, and removing costs and inefficiencies

VALUE CREATION 

STRATEGIC : Through reduced complexity, better visibility and control, Flexibility and sustainability



FINANCIAL : Through increase of savings potential, improved revenues and ongoing continuous improvement projects



COMMERCIAL : Through creation of a win-win partnership with the customer

CUSTOMER BENEFITS Cost reduction

Sustainability 1) Improved waste management

1) Continuous improvement of SC n/w design

Managing complexity

2) Reduction of inventory and capital cost

1) Complete control over complex SC through better visibility

3) Improvement in planning and cost visibility

2) Insights for improved control and reliability through insights received from control tower

2) Reduction in carbon footprint

LLP Growth Risk Mitigation 1) continuous monitoring through dashboards 2) Faster reaction time to handle issues

1) Retention of customer through better customer service 2) A sustainable and resilient supply chain creation

3) Modular and innovative services

Performance improvement 1) Better cost visibility 2) Better planning 3) A single point of 4) All processes KPI driven

TECHNOLOGY CAPABILITIES FLEXIBILITY (Adapting to customer’s unique requirement and rapidly adapting to change)

DATA VALIDATION AND STANDARDISATION

(Capability to translate the data received from partners into the customers system can understand)

EXCEPTIONS MANAGEMENT (Robust Exception management and alerting capabilities)

VISIBILITY ACROSS THE SUPPLY CHAIN

ROBUST REPORTING AND ANALYTICS (Has a robust customizable reporting capability that goes beyond simple ”canned” reports)

FROM 3PL TO LLP 

From an enabler to a partner



Standard and flexible end to end tech platform



From focussing on commission to mutual value creation



Scalable and modular systems



Strong data analytics capability