The growing demand for 4PL services is prompting eCommerce 3PL providers to offer value-added features traditionally exclusive to 4PLs. UK-based eCommerce fulfilment provider, Zendbox, is leading the way by blending the transparency and control of a 3PL with the strategic capabilities of a 4PL.
While 4PL services have traditionally been the domain of large global brands, Zendbox’s 3PL offerings bring enterprise-level strategic account management, advanced inventory analytics, and an industry-leading 10pm order cut-off time to mid-sized retailers.
James Khoury, founder and CEO of Zendbox, noted: “As a 3PL, Zendbox focuses on specific operational functions, whereas 4PLs typically oversee the entire supply chain, from raw materials to orchestrating multiple fulfilment centres globally. 3PLs typically own their own warehousing infrastructure and technology, whereas 4PLs do not, and instead rely on their relationships with 3PL providers, manufacturers and suppliers.”
“Operationally, Zendbox handles everything from receiving inventory, picking and packing, order processing, shipping, returns management, reporting and analytics. 4PLs, on the other hand, begin with developing a strategy for their client, presenting a selection of candidate fulfilment services, then coordinating the implementation of providers, and in the medium to long-term, optimizing the supply chain, identifying bottlenecks and gaps in customer service quality. At Zendbox, we are proud to offer many of these benefits that are normally exclusive to 4PLs, making them accessible to mid-market retailers who ship anywhere from 30 to thousands of orders per day.”
“Both 3PLs and 4PLs require ongoing performance management, with periodical review meetings to monitor KPI and OKR metrics, and Zendbox is no exception. Our goals with clients are to minimise overheads, enhance the customer experience, make more profitable business decisions, expand into new markets, and drive continuous improvement.”
Overview of 4PL Market Growth
According to a 2022 report, the 4PL market was valued at $59.5 billion in 2022 and is expected to reach $114 billion by 2032, with a compound annual growth rate (CAGR) of 7.5% over the forecast period. The increasing complexity of supply chains and the focus on technology and digitalisation within the logistics and supply chain industry are significant factors driving this growth. As supply chains become more intricate due to the need for international expansion, challenges such as customs clearance, shipping, and inventory management are expected to intensify. In the future, 4PL providers must adopt IoT, AI, and blockchain technologies to stay competitive and grow their market share.
