• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » 4PLs Make the Final Move

4PLs Make the Final Move

March 16, 2015
SupplyChainBrain

Heavy goods have been the first to see 4PL organization in the final delivery service. Consumers often have the inability to transport heavy goods such as furniture and appliances. There is an increasing trend for retailers, distributors, and manufacturers to outsource final delivery services traditionally completed by an in-house delivery staff. 4PLs provide technology and visibility across a network of regional service providers. Consider companies such as XPO Last Mile, Last Mile Home, MXD, and Installs Inc. Service providers are effectively serving retailers and manufacturers for delivery and installation of large goods. These companies combine a network of regional contracted service providers to do local delivery.

The next wave is the ship-from-store method by retailers to customers for online orders. As retailers turn their backrooms into fulfillment centers, service providers are needed to coordinate the delivery from the store to the final destination. Same-day delivery is hot right now, and it provides the ability for traditional brick-and-mortar retailers to compete with pure online retailers. But providing this service with in-house capabilities is not cost-effective.

The 4PL service provider that can offer a nationwide network of final delivery companies with technology and visibility will be in high demand. Add the capability for the customer to identify the time and place of delivery at the time of ordering, and the retailer will have a significant competitive advantage in their market.

4PLs have a lot to offer, including best-in-class customer service interactions relating to the final delivery of products. Technology that tracks the last-mile process through order entry, scheduling, and service completion is now needed to play in the game. Standardization of delivery processes and protocol assure the consistency of quality deliveries. The ability to monitor and qualify local agents is also critical.

Strategic companies are starting to see 4PLs' value proposition as consolidation. XPO acquired Optima in 2013. Optima had revenue of $35.7m and adjusted EBITDA of $3.7m, with a 16 percent compound annual growth rate over the past five years. In addition, private equity has jumped into the game. Platinum Equity acquired MXD (formerly Exel Direct) and further made an acquisition in 2013 of HomeDirect.

The Outlook

Whether it is a distributor, manufacturer or retailer, the final interaction that a company has with its customer is by the final delivery. As consumers continue to buy larger items online, companies need local quality, professional local service providers, and customer service for deliveries—and 4PLs are the key providers of this value. In the future, we see more 4PLs serving the ship-from-store space. Today's 4PLs have established relationships with large retailers and can leverage this to offer services for non-heavy products.

RELATED CONTENT

RELATED VIDEOS

Logistics Logistics Outsourcing Transportation & Distribution Consumer Packaged Goods Retail
KEYWORDS 3PL consumer packaged goods distribution strategy last-mile delivery Lisa Kennedy Logistics Logistics Management: Third Party Logistics Logistics Outsourcing logistics services logistics services provider Project Manager Retail retail supply chain Tompkins International Transportation & Distribution
  • Related Articles

    The Final Word on Final Home Delivery

    Third-Party Logistics: Final Delivery - Shop. Select. Deliver.

SupplyChainBrain

Supply Chain Officers Must Face Five ‘Urgent’ Risk Areas, Gartner Says

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • 0620_NFT.png

    Can NFTs Be an Effective Tool for Supply Chain Visibility?

    Technology
  • The Craft Beer Boom: How to Satisfy Changing Consumer Tastes

    Shortages of Beer, Popcorn Join Supply Chain Crisis

    Global Supply Chain Management
  • FedEx

    FedEx Faces Big Changes as New Boss Confronts Higher Costs, Angry Contractors

    Last Mile Delivery
  • 0621_Burrito.png

    Chipotle Zeroes in on Supply Chain Traceability and Visibility

    Sourcing/Procurement/SRM
  • cyber crime

    The Cyber Blind Spot That Makes Every Supply Chain Vulnerable

    Regulation & Compliance

Digital Edition

Scb may 2022 sm

2022 Supply Chain ESG Guide

VIEW THE LATEST ISSUE

Case Studies

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

  • Fast-Growing Fashion Brand Scales E-Commerce Fulfillment With Whiplash

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics Generix
GEP GreyOrange Here
Honeywell Intelligrated IFM Inmar
Keelvar Kinaxis Korber
Liberty SBF Locus Robotics Logility
Lucas Systems Nvidia Old Dominion
ORTEC Parsyl QIMA
Redwood Logistics Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Verity
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing