outsourcing logistics

Chemtura Corp., a specialty chemicals company, has entered into a new long-term contract with Odyssey Logistics & Technology Corp.(OL&T), a provider of third-party logistics services (3PL). For Chemtura, OL&T will manage transportation and logistics activities within North America in the following modes: package truck, bulk truck, rail, and air.

OL&T also manages negotiations of all ocean export shipments out of North America. OL&T currently has a similar contract to provide these services to Chemtura affiliates in Europe, Middle East and Africa.

If you want a quick answer to the question, "What's new with 3PLs?" 4PLs would be as concise as you could get. 

While 4PLs have been around quite a while, the real news is the renewed attention they're getting. A "fourth-party logistics (4PL) provider" is one that may manage multiple 3PLs to take on a wider range of services for shippers. According to the 17th annual 3rd party logistics study performed by Capgemini Consulting in conjunction with Penn State, Panalpina, and EyeForTransport, while transactional, operational and repetitive activities tend to be the most frequently outsourced, as supply chain complexity increases, so do more strategic specialty services such as order management and fulfillment, IT services, supply chain consulting, fleet management and even sustainability management.