Find Your Perfect Match: An Open, Flexible 4PL Partner

Redwood’s new book, Modern 4PL for Dummies, outlines the many challenges facing logistics supply chains today — from complex, fast-changing omni-channel demand to frequent disruptions, both upstream and downstream. Author Eric Rempel, Chief Innovation Officer at Redwood, suggests ways to master that complexity, including digitalization, technology integration, greater reliance on data and analytics, and real-time connectivity and collaboration with partners. 

A previous blog post discussed the role of advanced technology in logistics optimization. By combining foundational solutions like a transportation management system (TMS) and warehouse management system (WMS) with next-gen innovations like a control tower or global trade management system, every company can create a customized digital footprint that’s purpose-built for its specific needs. 

But if you’re not quite up to speed on modern technology, or lack the dedicated internal resources to tackle digitalization, where do you begin? The fourth chapter in Modern 4PL for Dummies outlines a smart solution: Partnering with a trusted, expert advisor, in the form of a Modern 4PL.  

“A Modern 4PL solution offers the flexibility and power needed to manage complex logistics ecosystems,” writes Rempel in Chapter 4. “Modern 4PL services offer a neutral approach to logistics, enabling you to combine the newest technologies and services to meet your unique supply chain needs. This flexibility ensures you aren’t tied to a single provider or technology.” 

When asked for guidance in choosing a 4PL partner, Rempel cautions against collaborating with a logistics provider that offers a limited or “closed” approach.  

“Traditional, closed 4PLs have a standard playbook and their own proprietary solutions or service offerings,” says Rempel. “If you choose a closed 4PL that specializes in providing managed services, guess what? The solution they recommend for every single customer’s challenges will be managed services — even if that’s not the best fit. Or a closed 4PL might recommend a specific TMS because it’s the one they know best, instead of comparing multiple vendors and software features.” 

“But that kind of cookie-cutter approach — complete with standardized solutions, services, and processes — just doesn’t work well in the modern, fast-paced omni-channel landscape,” Rempel notes. “Today’s supply chains are way too complex for a one-size-fits-all approach. Companies should look for a partner that’s technology- and service-agnostic, providing customized support for every shipper.” 

Look for an Open, Platform-Based Approach 

According to Rempel, Modern 4PLs like Redwood offer unique value because of their “open” approach. Customers can create a customized digital ecosystem that brings together various solutions, systems, services, and partners to address their organization’s unique challenges. From special handling needs or end-user requirements to cross-border trade, this ecosystem is designed for every customer’s unique supply chain features.  

If an open 4PL enables customers to pick and choose from so many options, how does the supply chain come together in a connected, aligned way? The answer is iPaaS, or integration platform as a service. Every Modern 4PL, including Redwood, offers a proprietary iPaaS for logistics platform that brings together multiple solutions, and their data, in a centralized, tightly integrated manner.  

That means Redwood can combine a WMS from one vendor, a TMS from another vendor, and a variety of third-party apps in a single place, with a single user-friendly interface. All systems and solutions share real-time data, so the supply chain can respond quickly, and in an orchestrated way, to changes at any node. 

Redwood’s purpose-built iPaaS for logistics, and its open technology approach, deliver these and other advantages to customers: 

• Improved efficiency. Connecting solutions and data in real time means you can automate not just processes and workflows, but also daily decisions. Humans need to intervene less, which maximizes speed and productivity, while reducing errors. 

• Lower operating costs. A connected, intelligent supply chain can maximize capacities, resource utilization, real-time visibility, and responsiveness. Cost control is factored into every decision, protecting profit margins. 

• Greater agility and extensibility. A platform-based approach means it’s easy to add new solutions, systems, and services as the business grows and supply chain needs evolve. A Modern 4PL ensures that its customers are never locked in but remain open and agile. New innovations are easy to adopt, which creates a big competitive edge. 

• Continuous upgrades and improvements. Remember the days of static, on-premises software, when you had to live with an outdated version of the tool for years?  That’s all changed. A Modern 4PL creates a living, breathing tech ecosystem where updates are instantaneous and automatic following go-live.  

• Increased visibility. Disruptions are becoming all too common. An open, platform-based approach enables real-time data monitoring across the end-to-end supply chain. Logistics teams can respond faster to any exceptions, with fact-based decisions that deliver the desired cost and service outcomes. 

• Independence and empowerment. Forget waiting for weeks for IT staff members to manage key events like integrations and launches. With its user-friendly interface, iPaaS democratizes technology management and speeds up both initial implementations and future adjustments.  

Discover Why Hundreds of Customers Depend on Redwood 

In Modern 4PL for Dummies, Eric Rempel emphasizes the need to collaborate with the right Modern 4PL partner — a trusted advisor that’s large enough to offer a full range of services and capabilities but also provides close personal attention and a custom-tailored approach. 

Every day, Redwood helps hundreds of customer organizations achieve significant cost savings and service improvements via logistics optimization. At Redwood, no two customer engagements look the same. Instead, Redwood studies each customer’s challenges, threats, risks, and opportunities — and creates a unique supply chain footprint that includes both physical and digital assets. 

Why not contact Redwood today? Find out why so many companies rely on us — and why our average customer relationship exceeds nine years. And don’t forget to download your free copy of Modern 4PL for Dummies!