Supply Chain Management 2016-17
3PL and 4PL roles in Supply Chain Integration
Integration has been one of the central concepts of supply chain management (SCM) since the term ‘supply chain management’ was first used in the early 1980s. Since then, the academic literature has developed and explored the principles and practices of supply chain management, with integration remaining a key element.
Third party logistics (3PL) and Fourth party logistics (4PL) are terms used to describe the outsourcing by manufacturers and retailers of various aspects of supply chain management to specialist providers. To varying degrees, these services go beyond simply offering transportation or warehousing, and typically seek to link together several aspects of supply chain management activity.
In this assignment, I want you to consider the 3PL and 4PL services offered by industry specialists, and discuss (a) the extent to which they achieve the objective of ‘supply chain integration’ and (b) the advantages and disadvantages for their clients of outsourcing these activities.
More specifically, you will need to:
- Write a review of the key concepts and arguments concerning supply chain integration. You should base this on reading selected journal papers in the supply chain, operations management and related literature. This should include, but not be limited to: definition(s) of supply chain integration, how it is supposed to be achieved, its effects on performance, and whether it is desirable under all circumstances. Bear in mind the quality of the sources you use, and aim to draw on about 10 journal papers.
- Identify, describe and compare the services offered by up to four 3PL and 4PL specialist providers. You should use company websites and other relevant industry sources. Be as specific as possible about the services provided; it may be useful to include case studies of services offered to particular clients, as well as general descriptions of the services offered.
- Discuss whether and how the 3PL and 4PL services that you identify provide ‘supply chain integration’ as you have defined it in your literature review.
- Discuss, with reference to relevant concepts from the module, the advantages and disadvantages for the client of outsourcing to a 3PL/4PL provider. Make this as specific to 3PL and 4PL as possible.
I am interested in your analysis of 3PL and 4PL. As such, you should not reproduce or refer to existing academic discussions of them. You should also be sceptical and critical of the claims made by many of the industry sources you use – they are often trying to sell something. You may also want to relate your discussion to key SCM topics covered on the module such as inventory, inter-organisational relationships, the bullwhip effect, and so on.
General points
The word limit is 3000 words, excluding references and Appendices. Please use diagrams and Tables if you wish, and use subheadings clearly to indicate the structure of your work. All Figures and Tables must have numbers and titles, and you should refer to them explicitly in your text. Use a consistent method of referencing, preferably the Harvard system.
