Urban supply chain provides 4PL opportuntities

Growing cities in South Africa and the rest of the world present opportunities for logistics companies to provide 4PL services to shippers, according to a Frost & Sullivan report. “Urban Logistics for the most part is concerned with last leg of the product lifecycle – last mile deliveries,” says senior analyst and researcher Archana Vidyasekar. The urban supply chain mainly delivers what are essentially finished goods within cities. Specialist logistics companies will be needed to store and deliver goods in the complex urban environment because every city is unique, and there are no one-sizefits- all solutions. “Finished goods” could range from raw materials for construction companies in urban areas to finished products to retailers. “Disruptive” technologies such as 3-D printing and online purchasing combined with increasing congestion on the roads and rising fuel prices are forcing shippers to outsource their logistics. As a result, there is a growing demand for companies that can store and consolidate loads in order to distribute them more efficiently. 4PL adds value by sourcing components or ingredients from different suppliers, assembling or packaging them, storing the finished product and distributing it to the consumer, factory line, shop or building site when required. Services can include smaller inner-city warehouses, which are stocked during off-peak traffic times. When the roads are busy the logistics company can still deliver goods on demand. Frost & Sullivan estimates that 30-35% of logistics is already outsourced in urban regions around the world. “This will grow to over 50% of the spending in 2020 as logistics providers find methods to organise the unorganised supply chain and as logistics evolves into more of a 4PL concept,” she says. INSERT Their is a growing demand for companies that can store and consolidate loads in order to distribute them more efficiently.