E-Commerce Operations Management

As global supply chains become more digitised and interconnected, they also become increasingly complex. With the advent of pandemic, many businesses are now finding that they are struggling to maintain these complicated systems and keep up with the rest of their online business activities. This is where fourth party logistics (4PL) comes in, becoming an integral and essential part of e-commerce supply chain management in the 21st Century.

Unlike standard 3PL logistics where the operational work is outsourced to a partner, 4PL represents a much higher level of supply chain management for the customer by proactively overseeing all aspects of the supply chain and providing strategic insight into the logistics process. In effect, the client outsources all their operations to a single partner who is responsible for assessing, designing, planning, building, running, and even tracking an integrated comprehensive supply chain solution on the behalf of the firm.

A 4PL provider has control and accountability over the whole supply chain. Having a 4PL partner adds strategic oversight to a firm’s supply chain to provide the highest level of service for the best value. Outsourcing the entire supply chain to one partner may feel like a loss of control, however the opposite is true. Whilst keeping the client informed through regular status reports, the 4PL provider takes full responsibility for chasing the disparate elements in the supply chain to ensure goods are delivered on time and to the correct specifications. Having an effective 4PL system in place therefore means that the client’s firm can focus on their core competencies while the 4PL provider brings their experience to running the supply chain.

 Utilising significant expertise developed over years of operations

When outsourcing supply chain operations, the organisation used for this task needs to be trustworthy and reliable. Therefore, 4PL providers need  to have an excellent track record in supply chain management, with expertise and knowledge you can benefit from. An effective provider offers the strategic vision to plan and operate the supply chain network in the most efficient way and can bring new perspectives when considering the logistics strategy, saving the client from making costly and time-consuming mistakes. The provider can also coordinate with a broader base of potential pre-screened suppliers than the client may have in their network, to ensure the lowest transportation costs, without compromising on quality of service. Relying on solid project management principles will ensure that contextual challenges and operational complexities of the supply chain are effectively dealt with. 

Gain clear technological oversight on all aspects of the supply chain

A key element of 4PL is the technological oversight a partner will bring to supply chain management systems, providing standardization and automation of the logistics process through technological integration. Modern, complex supply chains can appear opaque without data-driven technical management and the ability to easily cut through the noise to understand all individual elements at any one time.

IT systems such as Cargowise provide a full life-cycle solution for the management of the supply chain. By utilising specific workflows and milestones, all procurement and supply chain elements can be managed and monitored – from requisition, bidding, contracting and purchasing through to shipment tracking and invoicing. Utilising the data from our systems enables us to feed into ongoing continuous improvement programmes across the supply chain to drive efficiency, effectiveness and cost savings.

See your supply chain as an integrated whole rather than separate parts

Typically, companies choose to use 4PL when their supply chain reaches a new level of complexity that requires external support to manage. A good 4PL provider will help identify areas for improvement and develop a bespoke logistics solution while taking complex matters into their own hands, so the client does not have to worry about it.

In summary, 4PL takes away the hassle of juggling multiple stakeholders within a supply chain by acting as a single point of control and letting the client have end-to-end visibility across all geographies and stock.

At Zgenie, our 4PL logistics services are specifically designed to support e-commerce operations on marketplaces. We work closely with our clients to understand their unique business needs and develop tailored solutions that optimize their logistics processes. As a leading provider in this space, we understand the unique challenges that come with managing a large volume of orders and ensuring timely and accurate delivery to customers. Our end-to-end supply chain management solutions encompass everything from inventory management to warehousing, fulfilment, logistics and sales analysis of orders . We leverage the latest technology tools to streamline processes and provide real-time visibility into inventory and shipment status. Our dedicated team of logistics professionals is committed to delivering exceptional customer service and helping our clients achieve their business goals. With our 4PL services, you can focus on growing your e-commerce business while leaving the logistics to us.