{"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

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

Third Party Logistics (3PL)<\/strong><\/strong><\/p>\n\n\n\n

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

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

Fourth Party Logistics (4PL)<\/strong><\/strong><\/p>\n\n\n\n

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

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><\/p>\n\n\n\n

3PL v 4PL <\/strong><\/strong><\/p>\n\n\n\n

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

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

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

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

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":"

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 … 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],"acf":[],"yoast_head":"\nSupply 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 - Sanicki Lawyers Melbourne\" \/>\n<meta property=\"og: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 property=\"og:url\" content=\"https:\/\/sanickilawyers.com.au\/supply-chain-and-distribution-issues\/\" \/>\n<meta property=\"og:site_name\" content=\"Sanicki Lawyers Melbourne\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-30T04:58:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/sanickilawyers.com.au\/wp-content\/uploads\/2021\/09\/blog-actual.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1366\" \/>\n\t<meta property=\"og:image:height\" content=\"422\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sanicki Lawyers\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sanicki Lawyers\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sanickilawyers.com.au\/supply-chain-and-distribution-issues\/\",\"url\":\"https:\/\/sanickilawyers.com.au\/supply-chain-and-distribution-issues\/\",\"name\":\"Supply Chain and Distribution Issues - 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