CANADORE COLLEGE

ASSIGNMENT - 2

SCM-110-01 SUPPLY CHAIN ADMINSTRATION

May 2023/2024

By: Professor: Kevin Viflanzoff

 ASSIGNMENT #2

Meer Faizan Ali - A00163499

Canadore College
 Assignment – 2

Answer the following questions by taking reference from Chapter 4:

1. Please explain the difference between 3PL and 4PL with examples.

Third Party Logistics (3PL) Fourth Party Logistics (4PL)

Provide a customizable service that allows Present a comprehensive solution that

customers to select individual items according combines various service providers into a

to their specific requirements. unified network, offering a seamless end-to-

end experience.

Emphasize the implementation of logistics Prioritize the strategic management of the

services. supply chain.

Characterized by a predominantly Adopting a consultative approach with a

transactional approach. greater emphasis on providing guidance and

advice.

Typically possesses assets such as warehouses Typically, does not possess assets and instead

and/or transportation facilities under their outsources logistics operations to third-party

ownership. logistics providers (3PLs).

An integral component within the supply A singular contact point within the supply

chain. chain.

Greater authority and oversight over the Takes full control and responsibility for the

shipping process. shipping process.

Third-party logistic (3PL): A 3PL provider is a company which provides logistics and

supply chain service to businesses. Services may include transportation, warehousing,

inventory management, order fulfillment, and distribution. For example, let us take

Amazon as an example, a renowned e-commerce company known for its extensive online

product offerings. Amazon forms a partnership with FedEx, a trusted 3PL provider, to

oversee its logistics operations. FedEx takes responsibility for receiving Amazon's

inventory, storing it in their warehouse facilities, maintaining optimal inventory levels,

and fulfilling customer orders. Whenever a customer makes a purchase on Amazon's

website, FedEx steps in to handle the tasks of selecting the product from inventory,

carefully packaging it, and shipping it directly to the customer. In addition, FedEx

manages the entire shipping process, ensuring the selection of the appropriate carrier and

guaranteeing prompt delivery to the customer's location.

Fourth-party Logistics (4PL): A 4PL provider is service provider that takes on a

strategic role in managing and coordinating the entire supply chain on behalf of a

company. 4PL provider acts as an integrator, collaborating with multiple logistics service

providers (3PLs) to optimize the supply chain. For example, Tim Hortons, a well-known

retailer specializing in coffee and baked goods, can partner with a 4PL provider like DHL

to streamline and enhance its supply chain operations. The 4PL provider acts as a

strategic ally, overseeing the coordination and integration of various logistics service

providers, warehouses, transportation companies, and suppliers. Their primary goal is to

optimize Tim Hortons' supply chain efficiency.

By teaming up with a 4PL provider, Tim Hortons can concentrate on its core business

areas, such as developing new products and ensuring excellent customer experiences.
 Meanwhile, the 4PL takes on the responsibility of strategically managing the supply

chain. This includes tasks like selecting reliable vendors, closely monitoring

performance, and optimizing overall supply chain operations to ensure smooth and

efficient processes.

The 4PL provider acts as a central hub and serves as the main point of contact for Tim

Hortons, overseeing the activities of different logistics partners. They offer valuable

strategic guidance, leveraging their industry expertise and utilizing advanced

technologies to drive efficiency and reduce costs throughout the supply chain. Through

this collaboration, Tim Hortons benefits from the extensive network, knowledge, and

experience of the 4PL provider, enabling them to effectively manage and optimize their

supply chain operations. The 4PL acts as a trusted advisor, continuously providing

insights and implementing improvement initiatives to help Tim Hortons achieve better

coordination, cost savings, and overall efficiency in their supply chain management.

Referenced from Wisner, Tan, and Leong, 2016. pp – 357-358 and

https://www.cargoflip.com/post/4pl-vs-3pl

2. If you are the SCM Manager for an electronics liquidation company, which Logistics

method would you choose?

As a SCM Manager I would choose Global Logistics and Reverse Logistics method for

my electronic liquidation company. The following would be my strategy to make my

company’s SCM efficient:

Reverse Logistics: Reverse logistics is about managing the movement of products from

customers back to my company. As an electronics liquidation company, having a good

reverse logistics system is really important. It means handling returns in a smooth and

efficient way, fixing or improving electronics if needed, and figuring out what to do with

the products that are returned or not sold. By making reverse logistics better, my

company can save money, get the most value out of the products, and take care of

returned electronics properly.

Global Logistics: Global logistics would allow me to explore international markets for

selling the liquidated electronics. By identifying countries or regions with high demand

for electronics products, I can expand the customer base and increase sales opportunities

of these returned or unsold products. This would benefit me with partnering international

distributors, leveraging local market knowledge, and utilizing efficient shipping and

customs clearance processes to reach customers worldwide and sell these refurbished

products and make profit.

Referenced from Wisner, Tan, and Leong, 2016. pp – 366-370

 Reference

Wisner, Joel D., Keah-Choon, Tan, & G. Keong Leong. Principles of Supply Chain

Management: A Balanced Approach. USA: Cengage, 2016.

https://www.cargoflip.com/post/4pl-vs-3pl