They increasingly divest themselves of physical assets

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In recent years many3PLs have grown in scale and become quite sophisticated. In this chapter we also saw how some 3PLs are in practice offering 4PL® type solutions. In fact some 3PLs have advanced to the point where they believe that their knowledge and systems, and not the physical capital which they own and operate (warehouses, transport, etc.), are what gives them critical, competitive advantage. Some commentators refer to such 3 PLs as ‘asset unencumbered’ in that they increasingly divest themselves of physical assets, yet concomitantly grow their business via more effective use of people, knowledge and systems.

Search the web for examples of 3PLs becoming ‘asset unencumbered’. Is such a strategy sustainable in the long term, in your view?

Reference no: EM132221081

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