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4PL logistics providers — Scaling up supply-chain efficiency
|About 75 per cent of the Fortune 100 companies and about 45 per cent of Fortune 500 companies have now gone in for 4PLs. |

The term "4PL" was actually coined by the consulting group Accenture. In fact, they also hold the trademark to the name 4PL.

Accenture defines a 4PL in the following manner:
"A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions." The transport sector in India: Manufacturers do not seem to pay much attention to their transportation needs, relying on the conventional way of calling up truck operators and getting the best rate. Thus, the firms end up paying a lot of money on transportation simply because of poor planning on distribution.
However, things are changing with the entry of foreign companies that, usually, have strong logistics support. This and the increasing realisation of the importance of timely delivery of materials and products are slowly changing the way companies are looking at logistics.
In this context outsourcing of logistics makes a lot of sense for Indian firms not many of which have a professionally run logistics division, feel logistics experts. This will free companies from the worry of getting materials on time or distributing their products within and outside the country.
According to global consultancy firms, outsourcing of logistics became popular in the Netherlands in the 1990s, mainly inspired by the work of Prof Michael Porter, of the Harvard Business School, on core competencies and creating competitive advantage.
Though India is still an emerging market in manufacturing, the presence of multinational logistics firms, including SembCorp, Exel and BAX, and a couple of Indian firms

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