STUDY SUCCESS FACTORS 4PL, LLP AND 3PL IN CHEMICAL LOGISTICS
The study “Success factors of 4PL, LLP and 3PL in chemical logistics” by CAMELOT Management Consultants AG and Professor Christian Kille from the Würzburg-Schweinfurt University of Applied Sciences offers companies in the chemical industry a guideline for their outsourcing strategy in the field of logistics and supply chain.
Managers in the chemical industry are constantly confronted with the question of which processes their company carries out itself and which are outsourced to external service providers. The aim is not only to reduce costs directly, but also to optimize processes along the entire supply chain in order to reduce the TCO (Total Cost of Ownership) and further enhance international competitiveness.
CAMELOT Management Consultants has for some time been observing a changing demand in the outsourcing of services and partner selection. In addition to operational topics such as warehousing and transportation, there is an increasing demand for process knowledge skills and innovative IT solutions that are assigned to lead logistics providers (LLP) or fourth party logistics providers (4PL). This topic is also being driven by increasing digitalisation and the emergence of new online platforms.
In order to address these current trends, CAMELOT Management Consultants, together with Prof. Dr. Christian Kille, Institute for Applied Sciences IAL at the University of Applied Sciences Würzburg-Schweinfurt (FHWS), published the study “Success Factors 4PL, LLP and 3PL in Chemical Logistics” in June 2018. The basis is a scientific analysis of the provider models of logistics around LLP or 4PL providers and the outsourcing motivation in combination as well as a professional survey among logistics experts mainly from the chemical industry.
Guide to Outsourcing Strategy
From this, a guideline with seven steps was developed which can be used to answer which provider model can be used to solve which complexity with which services and in which form of cooperation. This enables a company to examine how an outsourcing strategy could be designed and which areas of logistics it could cover in order to successfully transfer logistics to the right external partner.
3PL, LLP and 4PL
The study lists the current logistics services within the corresponding nomenclature Third Party Logistics (3PL), Lead Logistics Provider (LLP) and Fourth Party Logistics (4PL) and links these with the requirements of industry depending on the state of organizational development. The results of the study show the relevance of outsourcing logistics processes for the chemical industry. It allows a detailed insight into the levels of decision-making and supports chemical companies in identifying potential for outsourcing and in taking the right steps.
Guest contributions from BASF and DACHSER
The study also includes guest contributions by Dr. Andreas Backhaus, Senior Vice President European Site Logistics Operations BASF SE, Ludwigshafen am Rhein; Dr. Henrik Follmann, Managing Partner Follmann Chemie GmbH, Minden, and member of the Executive Committee of the German Chemical Industry Association (VCI); and Michael Kriegel, Department Head DACHSER Chem-Logistics, DACHSER SE, Kempten.