Where does this all begin?
The dynamism of markets that we are currently experiencing makes organizations focus their efforts on generating strategies that mark a difference with their competitors, in most cases it means to concentrate on their core business whilst relying on outsourcing their logistics activities to ensure efficiency without increasing operational costs.
Companies that have understood this dynamic and seek to develop competitive advantages, find 4PL to be the vehicle that allows them to plan, manage and control their supply chain with a single contact between its many suppliers and final customers.
In response to these needs, and after 10 years trying to understand how to apply 4PL in Colombia under the premise that ‘’every company obeys their particular complexities’’, Transborder SAS, with the help of APL Logistics provides a proposal with value proven by more than 500 companies around the world in different specialties (e.g. Nike, GAP, General Motors, P & G and Unilever).
What do we offer in the 4PL division?
Transborder SAS and APL Logistics offers the ability to plan the supply chain of your organization, enabling a reduction of costs, improving cash flow, information and products through the integration of final customers, suppliers and logistic operators. All this is achieved through the use of informational systems tailored to each customer, which give you the opportunity to access information in real time and ensure correct decision-making.
4PL Management Model
For whom do we work?
We can provide our services to all those companies with multiple suppliers and shipping arrangements, which given their transaction volume require PO level control for all their supply shipments to Colombia and other countries.
We specialize in 4 areas: CONSUMPTION, AUTOMOTIVE, LIGHT INDUSTRY AND RETAIL.
How do we do it?
Technology and Supply Chain have always worked hand in hand; the amount of information and the complexity of logistics and operational configuration of certain companies require the assistance of technology to be able to run at speeds that industry and the globalized world demand. These tools have changed over time and are constantly evolving to offer opportunities that open doors to new business models today.
Transborder SAS delivers these tools necessary for decision-making and allows the transactional monitor of your entire international supply chain.
Business Model, CNS
What problems do we solve?
Some of the problems we meet in implementing this service model are:
- Problems in the coordination of production factories.
- High amount of emails and loss of emails
- Problems with the version of purchase orders when changes are made
- Problems with the consolidation of information to approve or reject purchase orders
- Following up with production at place of origin
- Suppliers do not respond to email
- Suppliers provide wrong information
- Suppliers lose reserves by not having dates present
- Alignment of Suppliers and compliance programs
- Problems with suppliers over remote communication (time zone differences)
- Lack of experience when implementing practices for customer support
- Problems with the management of reserves at place of origin
- Suppliers lose the reservation dates
- Differences between bookings and PO’s
- Problems due to delays in the authorization of bookings after any eventuality
- Thousands of emails aimed at coordinating or approving bookings/Shipments
- Problems in identifying bookings after any eventuality when there’s a high number of bookings during the day
- Infrastructure at place of Origin
- Problems having no facilities at place of origin that allow the consolidation of cargo from several suppliers to optimize the use of containers
- Suppliers do not have the tools or equipment to pack and/or provide the packing list
- Problems over not having the tools to make loading plans for consolidated containers
- Reservations with shipping company
- Problems with the coordination of reservations when contracts are handled directly with the shipping company.
- Difficulties when managing documents associated with shipments.
- Difficulties verifying documents before the start of shipments.
- Transportation Administration
- Delays in times and dates due to the inability to consolidate shipping information manually.
- Loss of emails with shipment information.
- Third countries
- Increased penalties due to delivery failure
- Problems with the release of shipments causing high delay fees
4PL Definition according to various authors
Biederman (Quoted by Hosie, Egan & Li, 2007) suggests that 4PL can be interpreted as “the practice of consultant firms, as administrators not based on assets, overseeing the work of many 3PL providers in the supply chain management”.
4PL, according to Salomon (cited by Flores, 2011) “undertakes an activity about planning and coordinating flow of information. Design of logistics and an information system that applies to these integrated processes. However, it does not run the corresponding physical flows that are entrusted to different physical operators”.
Şerafettin Kutlu in his book (Fourth Party Logistics: The Future of Supply Chain Outsourcing) uses the definition proposed by the Business Intelligence Group (BIG), “4PLs converge and manage supply chains of a company or a specific industry from a central point, using the best of the third-level logistics operators (3PL), technology service providers, specialists in the supply chain or consultants to provide a unique solution that can not be achieved by a 3PL on its own”.