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Chem logistics: study about outsourcing

When and for whom does it make sense to outsource logistics management tasks? A new study, “Success factors from 4PL, LLP, and 3PL in chemical logistics,” provides the answers.

Chem logistics: study about outsourcing

Ready for the future thanks to tailored logistics solutions: What is the right outsourcing strategy, and how and with whom can it best be implemented by companies in the chemical industry? This is the question posed in a recent study, “Success factors from 4PL, LLP, and 3PL in chemical logistics,” published by the Institute for Applied Logistics (IAL) at the University of Applied Sciences Würzburg-Schweinfurt (FHWS) and CAMELOT Management Consultants AG. Supported by Dachser Chem-Logistics, the study aims to highlight the topics of fourth-party logistics (4PL), lead logistics providers (LLP), and thirdparty logistics (3PL) for supply chain managers in the chemical industry. The processes outlined in the study can help companies perform a targeted analysis of their outsourcing strategies.

Making the right call

“To make the right decision as to what proportion of their logistics management tasks to outsource, companies must clearly identify what their own motives are and be able to judge what role logistics plays in their own corporate structure,” write study authors Professor Christian Kille and Constantin Reuter. Kille, a scientist, and Reuter, a management consultant, also underline the importance of examining the complexity of the situation and internal conditions before considering contractual specifics for collaboration with a logistic provider. In general, 4PL providers and LLPs can carry out the various strategic, tactical, and operational logistics management tasks. The study explores in detail when it makes most sense to use each of the 4PL providers and what role the topic of neutrality really plays. With “4PL provider,” the study refers to companies that are not tied to a 3PL provider due to reasons of ownership.

In contrast, an LLP does have corporate ties to a 3PL provider; it can retain control and professionally perform operational logistics tasks. Dachser sees itself as a 3PL provider and has recently developed an LLP solution.

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