4PL and Control Towers - silverbacklogistics.comsilverbacklogistics.com/wp-content/uploads/2018/03/4PL-and-Control... · Fourth Party Logistics (4PL) arrangement in which a firm contracts

4PL and Control Towers

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The place to go for free supply chain advice1

Buzzwords and definitions



Fourth Party Logistics (4PL) arrangement in which a firm contracts out(outsources) its logistical operations to two or more specialist firms (thethird party logistics) and hires another specialist firm (the fourth party) tocoordinate the activities of the third parties.

A Lead Logistics Partner (LLP) as the name suggests is the single pointof contact for managing the supply chain of a global organization. Therange of services provided by an LLP may range from simply managingthe logistics and distribution functions to managing the 3PLs to managingthe inventory and sourcing and procurement.

Great consultant territory but……boils down to generating value within thesupply chain for the customer, principally through one central point ofcontact giving visibility to the network. Then deploying availableresources to optimize service and value delivery.

What is a control tower?



Dedicated account personnel

Real time inventory optimisation

E2E temperature management

Life before control towers



Control towers for healthcare



Dedicated account personnel

Real time inventory optimization

E2E Temperature management

Quality Service Value

A top 15 global pharma organisation



The centralised transportation and logistics model (CTM)

The CTM is responsible for:

•Transport quality management

•Customer management

•Transport carrier management

•Transport cost management

•Temperature management

The CTM delivered

•Reduction in providers from X to Y

•Warehouses reduced from X to Y

•QTAs agreed with all transport service providers

•Cost savings through route and volume consolidation



Quality & Security

Service Level

Cost

One approach to transportation service provision

The centralisedtransportation and logistics model (CTM)



New hub concept

Customer’s view



• The approach enhanced quality assurance

• Reduced complexity and the number of service

providers

• Allowed for full process control (cooperation with

quality and procurement)

• Delivered savings through utilised network and

buying strength

• One stop service

• Transport execution

• Monitoring (real time where available)

• Interventions

• Handling irregularities

• CAPA

Looking to the future“Whoever owns the data, owns the supply chain”



Wearable devices

Patient centered care

Increased data demands

Physical internet

Start up, shake up

Complex competition

Hea

lth

care

Logi

stic

s

Conclusion: what are the control tower benefits in healthcare?



•Compliant with one consistent standard

•One consistent CAPA approach

•Reduced complexity and handling irregularities with one consistent quality technical agreement

Quality

•Defined carrier selection criteria and management

•Central visibility and one stop shop

•Optimized central route planning

•Milestone data informs the value chain

Service

•Value driven from

•Buying strength - lower supply chain cost per unit

•Greater utilization of the network - more efficient use of resources

• Inventory optimization

Value


The place to go for free supply chain advice 12

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4PL and Control Towers - silverbacklogistics.comsilverbacklogistics.com/wp-content/uploads/2018/03/4PL-and-Control... · Fourth Party Logistics (4PL) arrangement in which a firm contracts