{"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":"\n