{"id":4142,"date":"2022-11-30T15:58:02","date_gmt":"2022-11-30T04:58:02","guid":{"rendered":"https:\/\/sanickilawyers.com.au\/?p=4142"},"modified":"2022-11-30T15:58:02","modified_gmt":"2022-11-30T04:58:02","slug":"supply-chain-and-distribution-issues","status":"publish","type":"post","link":"https:\/\/sanickilawyers.com.au\/supply-chain-and-distribution-issues\/","title":{"rendered":"Supply Chain and Distribution Issues"},"content":{"rendered":"\n<p><strong>Many businesses want to outsource their logistics as it is more cost effective, reduces internal labour costs and is more effective leaving the distribution, warehousing and fulfilment to a specialist company. Here are a few tips to consider when deciding whether to appoint a third or fourth party logistics company:<\/strong><\/p>\n\n\n\n<p><strong>Third Party Logistics (3PL)<\/strong><strong><\/strong><\/p>\n\n\n\n<p>A 3PL company will handle the warehousing, distribution and often fulfilment of products for a company. They will receive and store stock and deliver goods (usually under your business name, not theirs) which can be important and is preferred by many companies.<\/p>\n\n\n\n<p>A 3PL company may also provide packing and inventory management of products and stock, depending on the business needs. Ultimately, with a 3PL company your business still has control over distribution and management decisions.<\/p>\n\n\n\n<p><strong>Fourth Party Logistics (4PL)<\/strong><strong><\/strong><\/p>\n\n\n\n<p>A 4PL company offers all the services of a 3PL company but manages the overall supply chain including legal paperwork and managerial decisions. As a result, the 4PL company will have complete control over your entire supply chain and will use their own resources to ensure the supply chain needs are met.<\/p>\n\n\n\n<p>However, a downside of utilising a 4PL company is that it removes the management of logistics from the business (in some cases this is, of course, a benefit).<strong><\/strong><\/p>\n\n\n\n<p><strong>3PL v 4PL <\/strong><strong><\/strong><\/p>\n\n\n\n<p>When considering whether to appoint a 3PL or 4PL company, consider if you want to retain control over your supply chain logistics and to what extent and the cost\/benefit analysis of appointing a 3PL company as opposed to a 4PL company.<\/p>\n\n\n\n<p>If your business can handle the administration, insurance, and logistics, then a 3PL company may be more suitable as it leaves the decisions to logistics with the business, as opposed to a 4PL company which will handle everything.<\/p>\n\n\n\n<p>As with any contract, you should seek specialist legal advice and ensure issues such as risks, warranties, indemnities, and insurance, are adequately covered to protect your business.<\/p>\n\n\n\n<p>We have over 35 years\u2019 experience supporting franchisors with establish and support their franchise system, Master Franchise rights, acting for overseas franchisors, advising franchisees, and resolving franchise disputes.<\/p>\n\n\n\n<p>If you would like further information on franchising, contact Robert Toth (robert@sanickilawyers.com.au) or Kristen Attard (kristen@sanickilawyers.com.au) or call us on (03) 9510 9888.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many businesses want to outsource their logistics as it is more cost effective, reduces internal labour costs and is more effective leaving the distribution, warehousing and fulfilment to a specialist company. Here are a few tips to consider when deciding whether to appoint a third or fourth party logistics company: Third Party Logistics (3PL) A &hellip; <a href=\"https:\/\/sanickilawyers.com.au\/supply-chain-and-distribution-issues\/\">Continued<\/a><\/p>\n","protected":false},"author":9,"featured_media":4031,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[115,117],"tags":[204,199,203],"class_list":{"0":"post-4142","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-commercial","8":"category-franchising","9":"tag-distribution","10":"tag-franchising","11":"tag-supplychain","12":"entry"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Supply Chain and Distribution Issues - Sanicki Lawyers Melbourne<\/title>\n<meta name=\"description\" content=\"Many businesses want to outsource their logistics as it reduces internal labour costs and is more effective leaving the fulfilment to a specialist company.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Supply Chain and Distribution Issues - 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