Logistics, Reverse Logistics,

3PL,4PL
Milind Sakhardande
 Logistics

• Logistics is the overall process of managing how

resources are acquired, stored, and transported to
their final destination
• Poor logistics in a business can impact its bottom line
• Logistics is now used widely in the business sector,
particularly by companies in the manufacturing
sectors, to refer to how resources are handled and
moved along the supply chain
 Reverse Logistics
• All operations related to the reuse of products and materials
• the process of moving goods from their typical final destination for
the purpose of capturing value, or proper disposal
• Remanufacturing and refurbishing activities also may be included in
the definition of reverse logistics
• Can happen in terms of:
– Damaged goods
– Product recalls
– Warranty returns
– Inventory returns
– Reusable containers/packaging
– Reusable goods
– Seasonal items
– Hazardous material
 3PL
• The main characteristics of a 3PL

– Most of the time, a 3PL will be receiving, handling, storing

and delivering your goods. Usually, they will do so under
the name of your business not theirs.

– A 3PL may provide the warehousing, packing and even

some of the inventory management of your products and
stock, depending on the needs of your business and what
has been agreed to be supplied. Perhaps the most
important consideration is that with a 3PL, the business is
still, to some degree, in the managerial seat
– 3PL helps in value maximization and cost reduction by
coordinating supply chain segments end to end
• Advantages of 3PL
– Reduce costs
– Customer conversion and retention
– Increase sales
– Product improvement
– Reverse logistics is inherently green
– 3PLs use a network of providers that can offer eco-friendly
expertise in varying services like
• Remanufacturing
• Refurbishment
• Recycling parts and materials
• Reuse or restock
• Repackaging
• Efficient transportation
 4PL
• The main characteristics of a 4PL
– A 4PL, on the other hand, offers all the same things that a
3PL provides, as well as managing the overall supply chain,
right down to the legal paperwork and managerial
decisions
– When a business signs a contract with a 4PL provider, they
are signing over the complete control of their entire supply
chain
– This means that the 4PL will use their own resources to
ensure your business’s supply chain needs are met, but
that your business has no control over how that happens
 Difference between 3PL and 4PL
• 3PL provider will take care of the bulk of the actual
moving and storing of your stock, but will leave the
management to you. This can be both positive and
negative, depending on your resources.
– Does your business have the knowledge to deal with legal
papers and insurance?
– Do you have the manpower and expertise to manage the
overall logistical operation?
• 4PL provider will handle everything, including the
many responsibilities that go along with it. But, from a
managerial point of view, your business will have no
say in how that is carried out. Ultimately, the provider
is in full control of your logistical operations, providing
they meet the requirements of your contract.
 References
• https://www.investopedia.com/terms/l/logistics.
asp
• https://en.wikipedia.org/wiki/Reverse_logistics
• https://www.unleashedsoftware.com/blog/unde
rstanding-difference-3pl-4pl
• https://rtdlogistics.com/5-reasons-why-a-3pl-
should-manage-your-reverse-logistics/
• https://edeminence.com/courses/management/a
dv-diploma-in-logistics-supply-chain-
management/