We at Wiima wanted to give our 2 cents on the buzz around the modern-day buzzword: AI. We played with the new Microsoft Bing:

1st question: let’s start with an easy one: “What is 4PL logistics?”

Answer: 4PL logistics stands for Fourth Party Logistics. It is a type of logistics service that provides end-to-end supply chain management solutions to businesses. A 4PL provider acts as a single point of contact between the customer and multiple logistics service providers (LSPs) such as carriers, freight forwarders, customs brokers, and warehouses. The 4PL provider manages the entire supply chain on behalf of the customer, including planning, execution, monitoring, and optimization of logistics operations.

Comment: Quite nice, wouldn’t do better myself. This took just 4-5 seconds.

2nd question: “What are the benefits of 4PL logistics?”

Answer: The benefits of 4PL logistics include:

1. Improved customer satisfaction
2. Increased resources for furthering core competencies
3. Easy, scalable options for taking advantage of growth opportunities
4. Access to a single point of contact for all vendors involved in the supply chain
5. Back-end system integration of logistics processes with other business functions
6. Reduced procurement costs and order cycle times
7. Standardization and automation of inbound, outbound and reverse logistics
8. Access to a broader base of suppliers, ensuring lower costs of transportation.

Comment: This one took a bit longer, appr. 10s. Quite an impressive list, all I would add is flexibility. Scalability and capacity flexibility is there but supply chain design flexibility is missing. I think one of the key benefits of operating an extended supply chain is the adaptability to changing customer demands and preferences.

3rd question: “What are the disadvantages of 4PL logistics?”

Answer:

“The disadvantages of 4PL logistics include:

1. Giving up significant control over transportation and logistics operations
2. Potential biases not based on performance, outcomes or efficiency.
3. Difficult transition if removing 4PL provider.
4. Increased costs, hiring a 4PL can be costly as they are responsible for managing every part of your supply chain
5. Limited Operational Control, as the 4PL will manage the entire supply chain, you’ll have little to no control over how they choose to run this aspect of your business.
6. Long-term Agreement.

Comment: Took appr. 20 s. Very relevant and we have come across to these as well with some of our sales prospects that have not realized as sales. However, points 1-5 can be managed with well-defined and balanced KPIs and target setting. Typically, the agreements are long-lasting. However, our thinking in Wiima is that as we are delivering “Logistics as a service” the service must fulfil its quality and cost-efficiency promises every month, every day and every transaction. If we are not fulfilling this promise, it should be easy for customers to opt-out.

Those were fairly easy, let’s make it harder with questions that require evaluation of different options.

Read more in the original article on our website!