Lead Logistics Provider

Managing your entire supply chain to meet changing business and customer needs

A lead logistics provider (LLP), also referred to as a 4th-party logistics provider (4PL), can direct every aspect of your supply chain including managing other 3PLs, overseeing transportation management, supervising warehouse operations or operating any other portion of your supply chain. An LLP becomes your partner in streamlining the processes and of moving parts and products, and creating a lean, cost-effective operation.

An LLP (or 4PL) acts as your primary supply chain management provider. They will define processes and manage the acquisition and integration of logistics services, either through their own organization or via subcontractors. An LLP oversees every detail on your behalf.

Our Expertise as a Lead Logistics Provider

As a lead logistics provider for businesses around the world, Penske finds new and improved ways to coordinate all aspects of supply chain service on a day-to-day basis.

Every business has its strong points. Since ours happens to be warehousing and transportation management, or in other words, freight management, you can focus on perfecting and maintaining your core business.

Our expertise as an LLP will guide us as we work with you to identify opportunities to reduce slack in every area of your supply chain including:

• Optimizing transportation operations
• Coordinating suppliers
• Integrating supply chain technologies
• Synchronizing inbound logistics and outbound logistics flows
• Modeling and managing distribution networks

Comprehensive Supply Chain Oversight and Management

Customers turn to Penske for LLP services because we can provide subject-matter expertise to optimize every level of your supply chain. You'll find that our logistics experts can bring their unique operational experience from a wide variety of industries including automotive and food and beverage to help with challenges in every nook and cranny of your supply chain. Some of the areas where you'll recognize their immediate value are:

• On-site, with parts follow-up, load verification and quality inspection
• Operations, with border, claims, supplier and warehouse management
• Network, from site and mode selection to routing and realignment
• Transportation management, including carrier or fleet management, load building and tracking
• Financial, including procurement, metrics and invoicing

Outsourcing to a Lead Logistics Provider

You should consider several factors when making the decision to outsource the management of your supply chain:

• Does outsourcing to a lead logistics provider make sense strategically? Will outsourcing supply chain management responsibilities allow you to focus on your core competencies? Will a lead logistics provider improve customer service? Will it enhance your ability to be adaptable and flexible?
• Does outsourcing to an LLP make sense operationally? Will outsourcing improve process execution? Will outsourcing give you access advanced technology, giving you visibility to your freight and improving efficiency?
• Does outsourcing to an LLP make sense financially? Will engaging an LLP help you gain more control of your bottom line by managing and containing costs? Can an LLP reduce capital requirements?

Additional Benefits of Outsourcing Supply Chain Management

Devising common strategic and operational values drives out 8–12% of our customers' supply chain costs. From the ground up, we establish a strategic financial baseline to influence our decision making as it applies to ideation, design, implementation, validation and value tracking of logistics solutions.

Benefits of outsourcing supply chain management to Penske include:

• Broad industry expertise – Penske started out as an LLP in the automotive industry, an industry with one of the most complex supply chains, and took that knowledge into other areas including food and beverage, retail and industrial.
• Our people – The backbone of any supply chain is the people who run it. The average tenure of Penske operators and engineers is 5-9 years respectively. Our people are dedicated to your business and run it as if it were their own.
• Superior technology – Even the best people can't run an efficient supply chain without having visibility into every part that needs to get from point A to point B. That is why Penske put together the best mix of industry-leading software and database systems combined with our own proprietary applications to keep your business moving forward.