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What is fourth-party logistics?

"Third-party logistics", as an emerging logistics method, is active in the circulation field. Its functions of saving logistics costs and improving logistics efficiency have been recognized by many companies. As the requirements of enterprises increase, "third-party logistics" begins to be unable to integrate all logistics resources in society to solve logistics bottlenecks and achieve maximum efficiency; although from a local perspective, third-party logistics is highly efficient, but from a regional, For a country as a whole, third-party logistics companies operate independently. It is difficult to achieve optimal results and solve logistics bottlenecks in economic development, especially new logistics bottlenecks in e-commerce. In addition, the development of the logistics industry requires the promotion of technical experts and management consulting experts, but third-party logistics lacks the support of high-tech and high-quality talent teams. In this regard, some people have suggested that the relationship between customers and third-party logistics must be close and standardized management must be carried out. So "Fourth Party Logistics" (4PL, Fourth Party Logistics) came into being. The concept of "Fourth Party Logistics" was first proposed by the famous management consulting company Accenture (also known as AXA Consulting Company), and "Fourth Party Logistics" was registered as a proprietary service trademark and defined as " A supply chain integrator that deploys and manages the organization's own resources, capabilities and technologies as well as those of complementary service providers to provide comprehensive supply chain solutions." Although some personnel in the industry suspect that the consulting company's move is to enclosure and dominate the industry, it is widely recognized in the industry that the increasing complexity of logistics management and the explosive development of information technology have made the process of supply chain management difficult. Indeed, a "super manager" is needed for management and coordination. Moreover, academics, management consultants, third-party logistics companies, and end customers all agree that the need for such entities is growing. Its main function should be: to monitor the supply chain of a manufacturing company or distribution company, and to act as the only "contact" between the customer and its logistics and information suppliers. The main functions of fourth-party logistics are: to monitor the supply chain of manufacturing companies or distribution companies, and to act as the only link between customers and their logistics and information suppliers