4PL operators provide a complete business process
outsourcing solution to their clients. Information technology plays an important
role in 4PL operations, comprising elements of people, process and technology.
In 3PL operations, clients themselves kept a track of incoming inventories by
continuously following up with all the supplies as well as following up with
the 3PL operator. Communication and transportation of documents through
conventional e-mails and fax messages were also proving to be tedious and time
consuming.
4PL has emerged on an important area based on business
process reengineering and technology with a human interface provided in terms
of strategically placed personnel to have a seamless integration of process, people
and technology. The focus is to manage supplies from diverse locations and to
support the client by providing complete solutions rather than giving piece
meal alternatives to the problems. Due to 4PL arrangements, the retail chain
now has a complete visibility of its supply chain. It has to co-ordinate only
with one agency, that is, the 4PL operator for all its logistics needs.