Re-imagine supply chains and streamline future logistics.
What is Lead Logistics?
Resilience and digitisation for supply chain operations with Lead Logistics
In the last few years, supply chains have faced several challenges. Due to a lack of visibility and necessary systems, the logistics process often needs constant firefighting and steps to improve efficiency.
Adding to the complexity are multiple logistics partners, outdated technology, and lack of visibility with insights. This has led to high operational costs and a demand for more control. It's now time to re-imagine supply chains and aspire towards more simplification of future logistics.
How does it work?
Lead Logistics connects the physical and digital worlds of supply chain management and logistics.
This enables you to grow your business with services ranging from self-service logistics execution to partnering with you on supply chain orchestration. With global operations networks, owned-asset control, digital technology, multiple provider coordination and logistics solutions can be tailored to your needs.
Forget about managing logistics and focus on growing your business to reach even the most remote locations. Optimise, protect, and simplify your supply chains with end-to-end logistics services, a growing suite of digital solutions, and a global delivery network.
Choosing the right logistics provider
It often gets confusing to differentiate the various levels of logistics. Outsourcing logistics operations is essential for companies as even though an in-house logistics department may be cost-effective, it takes away time and focus from your business. The right logistics provider can help simplify your supply chain, lower costs, and overcome coordination and visibility challenges.
Here, we are taking the example of a dairy producer, Jake, to see how the different logistics providers impact his supply chain:
First Party Logistics (1PL)
In 1PL, the dairy producer has full control over his entire logistics process and transports his goods directly from his farm to end-users.
1PL is cost-effective as the solutions sit in-house with the customer.
However, this also means Jake needs to cater to an entire logistics department and have the expertise and equipment in-house to handle end-to-end logistics.
Second Party Logistics (2PL)
In 2PL, Jake hires a separate carrier to move his products from one location to another.
This level provides the customer with economies of scale by leveraging a network to utilize assets across various customers.
This stage could involve a courier company, rail, shipping service or trucking over a specific segment in the supply chain.
Third Party Logistics (3PL)
Here Jake outsources some of his logistics to a contracted service provider.
A 3PL service provider also offers procurement at scale for many different parts of the supply chain, and not just transportation.
The 3PL provides additional services that help to coordinate services like booking, documentation, warehousing, and packaging.
For Jake, a 3PL could package his dairy products and store them until delivery, along with the associated transportation.
Fourth Party Logistics (4PL)
In 4PL, Jake’s entire supply chain is made simple. He enters a long-term contract with a service provider to effectively takeover his logistics process.
There is no need for a full in-house logistics department, his own trucks, or the need to build logistics capabilities, freeing up more time for customers to focus on their business.
The 4PL company provides end-to-end supply chain management with a fully equipped and experienced logistics service team. The 4PL also coordinates the roles and functions of various 2PL or 3PL companies on behalf of the customer.
Why do you need Lead Logistics?
Why choose Maersk?
Leverage our 115+ years of global logistics experience in 130+ countries transporting your business to the future