What Exactly Does a Modern 4PL Deliver? A Real-World Example

Across two decades and hundreds of customer success stories, Redwood has gained a lot of experience and developed some deep expertise. That’s why we decided to write the book on logistics. Authored by Chief Innovation Officer Eric Rempel, Modern 4PL for Dummies is filled with practical information and expert insights about the unique value Redwood provides as a modern 4PL. 

But what specific results does a modern 4PL deliver for its customers? That’s a fair question. And, to a large extent, it depends on the specific challenges and opportunities faced by the customer. You only have to look at our many published customer case studies to see the range of services and value Redwood provides.  

But, for the sake of demonstration, Rempel developed a case study for Chapter 5 of Modern 4PL for Dummies that’s general enough for most companies to relate to. The case study is loosely based on an actual Redwood client, an industrial manufacturer. But its lessons and results apply equally well to consumer products, food and beverage, pharmaceutical, automotive, and retail supply chains. 

Before: Struggling to Navigate Omni-Channel Complexity 

Like many companies today, Nuts and Bolts Corporation was struggling to serve customers and meet financial targets in the modern omnichannel landscape. Every day, it had to profitably and quickly match e-commerce demand — from both resellers and end consumers — with thousands of SKUs supplied by 50 regional warehouses around the world.  

Even with worldclass tools and processes, this would be a challenge. But Nuts and Bolts was using outdated tech, inefficient manual processes, and fragmented systems. There was little connection or integration internally, with customers, or across the trading partner network. 

It was impossible for Nuts and Bolts to have end-to-end visibility, or drive an intelligent execution strategy, across functions and locations.  

The company’s distribution network was characterized by multiple transportation management system (TMS) and warehouse management system (WMS) solutions. Different software providers, and different versions of the same tools, resulted in gaps in operational awareness, business intelligence, cost and service outcomes, and performance metrics. In all, there were four different TMS solutions and nine WMS platforms, some managed internally and some by 3PLs. 

A new Chief Supply Chain Officer (CSCO) at Nuts and Bolts recognized that the company’s fragmented, disconnected logistics network was not built for modern omni-channel complexity and demand volatility. He brought in Redwood, a modern 4PL, to match the company’s tough supply chain challenges with an elegant, advanced solution. 

But, when Redwood proposed a new, open technology ecosystem — united by its integration platform as a service (iPaaS) solution — the plan was met with skepticism. If Nuts and Bolts were to flexibly “plug and play” a range of solutions, partners, and processes — based on optimally serving a range of logistics needs — how could this drive orchestration? Wouldn’t the result be the same as the “before” situation — a disparate mix of disconnected systems? 

The executive team at Nuts and Bolts initially underestimated the power and strength of Redwood’s iPaaS approach. They failed to recognize how iPaaS functions as a flexible integration layer that seamlessly bridges the gap between logistics execution and technology. At first, they couldn’t believe Redwood had the ability to transform an entire supply chain, with minimal friction and maximum speed, agility, and efficiency. 

In short, Nuts and Bolts didn’t understand the capabilities and approach of a modern 4PL. But thankfully, the new CSCO championed the idea of digital transformation — and invited Redwood to conduct an assessment, then implement its custom-tailored transformation plan for the company. 

After: Digitized, Agile and Profitable in the Face of Volatility 

Redwood’s approach for Nuts and Bolts included operational improvements, new best practices in procurement and cost control, process automation, new cutting-edge technology, and end-to-end connectivity via RedwoodConnect. Using its proprietary technology integration platform, Redwood was able to recommend different tools and strategies for different regions of the world, based on its expertise and wide range of capabilities as a modern, full-service 4PL. 

Redwood’s iPaaS, purpose-built for logistics operations, brought together all systems and solutions seamlessly and quickly, with minimal effort from the Nuts and Bolts IT team. Existing systems, new systems, and end-to-end data sources were connected in real time, enabling end-to-end visibility and control. The digital transformation, enabled by customized application programming interfaces (APIs) and a modular architecture, took weeks instead of months. 

As a result of its collaboration with Redwood, today Nuts and Bolts shares real-time visibility, and a single version of the truth, across functions, systems, and partners. When an exception or disruption occurs at any node, that awareness is shared immediately, so the entire logistics network can respond swiftly and intelligently. Decisions are guided by data science, analytics, and business intelligence, instead of faulty, time-consuming human analysis and outdated, slow-moving tools. 

In a landscape of volatility and disruption, Nuts and Bolts has achieved a significant competitive edge with an incredible new level of speed, precision, agility, and resilience. 

Imagine Your Own Before and After 

Nuts and Bolts might be a fictional company, but it typifies the results Redwood has achieved for hundreds of leading logistics teams, across industries and geographies. The results go beyond cost and service gains, to drive a supply chain that’s truly future-proofed. 

Don’t just imagine the transformational results Redwood can deliver for your own organization. Reach out to Redwood and get started on your journey to logistics optimization right now. Whatever your industry and business model, we know the nuts and bolts of digital transformation.