Questions About Modern 4PL? Redwood’s Got the Answers

By now, you’ve probably heard about Redwood’s new book, Modern 4PL for Dummies, written by Chief Innovation Officer Eric Rempel. Our purpose in creating this book was simple. While the Modern 4PL model offers game-changing advantages and benefits over a traditional 4PL model, many supply chain and logistics managers aren’t clear about the distinction.  

While we encourage you to download your free copy of Modern 4PL for Dummies for a comprehensive overview, a central difference outlined in the book is the broad expertise and flexibility offered by a Modern 4PL. Unlike a traditional 4PL that has a standard playbook and limited service offerings, Modern 4PLs like Redwood offer a full range of services and solutions — and an open, agnostic approach. This combination of diversity, flexibility, and objectivity takes your logistics results to a whole new level. 

Modern 4PLs like Redwood work with each customer to develop a custom-tailored digital ecosystem composed of diverse solutions, systems, services, and partners — based on each company’s own specific challenges and opportunities. This custom-tailored ecosystem is integrated and connected on a purpose-built iPaaS, or integration platform as a service.  

The Modern 4PL approach guarantees that no two customer footprints will look the same, because every supply chain is different. The Modern 4PL approach recognizes and embraces the uniqueness of every logistics organization, instead of trying to force-fit a one-size-fits-all approach on every company. 

If you need a refresher on Modern 4PL, we have great news. Chapter 6 in Modern 4PL for Dummies offers quick answers to the 10 pressing 4PL-related questions we hear most often at Redwood: 

• What is 4PL?
• How does 4PL differ from 3PL?
• What services does a 4PL provider offer?
• What are the advantages of using a Modern 4PL provider? 
• What is the importance of connectivity in supply chain? 
• How do companies select the right 4PL provider? 
• How does a Modern 4PL reduce supply chain risk? 
• What role does technology play in Modern 4PL? 
• Can a Modern 4PL help with scalability and growth? 
• How do I start the journey to transform my supply chain with Modern 4PL? 

A Key Question: How Do I Choose the Right 4PL Provider? 

If you’ve made it to Chapter 6, then you’re probably convinced of the value and relevance of the Modern 4PL model in today’s volatile logistics landscape. Probably your key question after reading Modern 4PL for Dummies is, “How do I find the ideal Modern 4PL partner?” 

There are a handful of critical characteristics you should be looking for. The first is solution and service range. A qualified Modern 4PLwill be able to address every one of your advisory and managed services needs. Their expertise will span foundational network design, top-level strategic consulting, day-to-day operations improvements, carrier selection and rate negotiation, process automation, data management, and supply chain digitalization. The right Modern 4PL will also be able to jump right in and provide freight brokerage, cross-border and global logistics support, managed warehousing and distribution, and managed transportation services — spanning single parcels to full truckloads, across multiple modes. No Modern logistics challenge will be too big or too small for the right provider.  

Because today’s supply chain environment is diverse and complex, ask Modern 4PL providers about their partner network. Your ideal provider will work with a range of software providers, with a solid understanding of the differences among leading vendors like Oracle, infios, and Blue Yonder. They’ll have no vested interest in a single transportation management system (TMS), warehouse management system (WMS), data platform, visibility platform, or other digital solution. Instead, they’ll expertly match your specific needs with the right features and functionality. If you need transportation support, find a Modern 4PL partner with extensive, trusted, and vetted carrier relationships across all transportation modes. A range of available partners translates to volume buying discounts, competitive rates, and the deep bench strength you need to handle disruptions or seasonal peaks. 

Another important decision factor? Customer success stories and references. Don’t hesitate to ask about a provider’s proven results in cutting costs, improving service, growing revenues and margins, increasing speed and efficiency, reducing labor and other resource demands, and meeting sustainability targets and other core metrics. If you’re going to trust a new partner with your valued shipments and customer relationships, they should have hundreds of success stories, across multiple industries and business models. Accept no less. And look for a broad assortment of case studies, spanning both physical operations and digital transformation. Beware of cookie-cutter approaches and implementations; the provider’s customer case study and reference library should be diverse. 

Pay special attention to time to value and return on investment. In today’s fast-moving and frequently disrupted world, no company can afford to invest time and money today — then wait months or years to see a payback. Modern 4PLs are masters at launching cloud-native, plug-and-play solutions. And they offer their own iPaaS platforms like RedwoodConnect to get the new digital ecosystem installed, integrated, and up-and-running — with minimal delays and business interruptions. Your business should start seeing some quick wins like cost reductions and increased service levels in mere weeks. That’s the advantage of working with a Modern 4PL, with expertise in managing both the physical supply chain and the digital supply chain. 

Settle for Nothing Less Than a Proven, Trusted Advisor 

At Redwood, we’ve achieved a lot of customer successes over the part two decades, and we’ve earned our fair share of compliments. Our favorite is when customers refer to Redwood as a trusted advisor.  

Today’s modern logistics landscape can be complex and confusing. It’s gratifying when customers tell us they trust us to help navigate that landscape successfully. There’s no greater testament to our team’s supply chain knowledge, technology expertise, and hands-on experience optimizing logistics across hundreds of customer organizations. 

You’ve recognized the value of working with a Modern 4PL. Now don’t shortchange your results or your financial returns by choosing a suboptimal partner. Contact Redwood and ask us about our solutions and services, partners, customer references, and time to value. Trust us, we’ve got the answers you’re looking for. That’s why we wrote the book on Modern 4PL.