A company wants to rapidly expand distribution internationally. The company has decided that distribution is not a core capability. Which of the following logistics strategies is most appropriate?
A company wants to rapidly expand distribution internationally. The company has decided that distribution is not a core capability. Which of the following logistics strategies is most appropriate?
When a company wants to rapidly expand distribution internationally and has determined that distribution is not a core capability, it is most appropriate to contract with a fourth-party logistics (4PL) provider for integrated logistics services. A 4PL provider coordinates the activities of various 3PL providers and manages the entire supply chain, offering a comprehensive and strategic solution for global expansion. This ensures the company can focus on its core competencies while the 4PL handles all logistics aspects.
We need to engage a fourth party logistics (4PL) provider for integrated logistics services. A 4PL provider will handle all aspects of the supply chain and can provide a complete solution for a company that wants to expand internationally but finds that distribution is not one of its core capabilities. While a 3PL might provide warehousing services, a 4PL would provide a more complete solution for international expansion.