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REAL REPORT
Consumerism
4PLs introduce the
notion of a “spider within
the web,” coordinating
activities that go well
beyond the direct
capabilities
of the actual enterprise.
While many of these
business process
outsource
(BPO) providers may
owe their origins to a
desire by organizations
to offload simple and
non-strategic operations,
they have nonetheless
become a critical
part of the supply chain
arsenal in dealing with
the challenges above.
developing an effi cient system at every point
along the supply chain.
These experts take many shapes
and forms, but they all can add value to
effective supply chain execution. Original
design manufacturers (ODMs) and contract
manufacturers (CMs) support the design and
manufacture of goods. Third-party logistics
(3PL) providers offer integrated warehousing
and transportation services that can be
scaled and customized based on market
conditions as well as the demand and
delivery requirements for the product.
The emergence of the fourth-party
logistics (4PL) provider broadens support
options far beyond logistics. 4PLs
introduce the notion of a “spider within the
web,” coordinating activities that go well
beyond the direct capabilities of the actual
enterprise. While many of these business
process outsource (BPO) providers may owe
their origins to a desire by organizations to
offl oad simple and non-strategic operations,
they have nonetheless become a critical part
of the supply chain arsenal in dealing with
the challenges above. They have matured
into domain experts and provide a fl exible
execution infrastructure on a global basis.
Tapping into the expertise of a BPO provider
can be the deciding factor in the strength
and execution of your supply chain.
Great expectations
Supply chain outsourcing has gone far
beyond simple transactional services. Many
44 Link May 2010