UK Logistical Services market report
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Providing the most comprehensive and up-to-date information and analysis of the Logistical Services market, and the behaviours, preferences and habits of the consumer.
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What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
Key Issues Covered
- Use of technology could help dampen impact of Brexit and workforce shortages
- Changes to transport strategy will affect business costs and vehicle usage
Covered in this report
The industry revolves around four main components: 1PL, 2PL, 3PL and 4PL. Some industry experts argue a fifth component has emerged: 5PL, which involves broadening operators’ scope to e-business.
First Party Logistics (1PL) concerns beneficial cargo owners, which can be the shipper (such as a manufacturing firm delivering to customers) or the consignee (such as a retailer picking up cargo from a supplier). They dictate the origin (supply) and the destination (demand) of the cargo, with distribution an entirely internal process assumed by the firm. With globalisation and the outsourcing and offshoring of manufacturing, distribution services that used to be assumed internally tend be contracted to external service providers.
Second Party Logistics (2PL) concerns carriers providing a transport service over a specific segment of a transport chain. It could involve a maritime shipping company, rail operator, or trucking company hired to haul cargo from an origin (such as a distribution centre) to a destination.
Third Party Logistics (3PL) involves the outsourcing of all or much of a company’s logistics operations to a specialised company. The term was first used in the early 1970s to identify intermodal marketing companies (IMCs) in transportation contracts. Contracts for transportation had previously featured only two parties: the shipper and the carrier. When IMCs entered the picture as intermediaries accepting shipments from shippers and tendering them to rail carriers, they became the ‘third party’ to the contract - the 3PL. The definition has now broadened to the point that every company offering some kind of logistics service for hire calls themselves a 3PL. Preferably, these services are integrated or bundled together by the provider. Services provided include transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding.
Fourth Party Logistics (4PL) differs from 3PL in the following ways: a 4PL organisation is often a separate entity established as a joint venture or long-term contract between a primary client and one or more partners; a 4PL organisation acts as a single interface between the client and multiple logistics service providers; most aspects of a client’s supply chain are managed by the 4PL organisation itself; and it is possible for a major third-party logistics provider to form a 4PL organisation in its existing structure. 4PLs have also been referred to as ‘lead logistics providers’, while a new crop of companies has emerged who are actual transportation companies. A 4PL is sometimes described as ‘a non-asset-owning service provider’, but their role is to provide broader scope managing of the entire supply chain.
- Road freight
- Rail freight
- Port (marine) freight
- Air freight
- CEVA Logistics (formerly TNT Logistics)
- DHL Supply Chain
- Eddie Stobart
- HOYER Petrolog UK (Formerly HOYER UK Limited)
- Kuehne + Nagel
- Wincanton Holdings
Expert analysis from a specialist in the field
Written by Lewis Cone, a leading analyst in the B2B sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
The logistical services sector is currently going through a period of digitalisation, with supply chain strategies undergoing changes or being completely overhauled to meet the challenges of new demands. The effective and efficient use of logistics space will be vital in making the most of the growing customer trend for ‘last mile’ and even ‘last metre’ delivery.
Senior B2B Analyst
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* This is a sample representation of the report layout and does not reflect the research included in this report.
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