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Source: J-P Rodrigue & CPCS. A third-party logistics provider (3PL) is an asset-based company that offers logistics and supply chain management services to its customers. It commonly owns and manages distribution centers and transport modes. A fourth-party logistics provider (4PL) integrates the resources of producers, retailers, and third-party logistics providers

3PL >     < 4PL Standard Advanced Complete Integrated Transportation servicesCarrier selectionRate negotiationFleet managementWarehousingCross dockingPick and Pack Distribution (direct to store/home)DispatchingDelivery documentation Shipment consolidation Vendor managed inventoriesStock accountingCustoms clearance and documentationAssemblyPackagingLabelingManaging product returnsFinancingRetail delivery, set up and on site trainingInventory tracking Order planning and processingInformation and Communications Technologies (ICT)

Source: Federal Highway Administration, Office of Freight Management. Distribution systems have become increasingly driven by demand instead of by supply, implying a shift in the relative importance of specific logistical functions, mainly inventory, transport, and information systems: Supply-driven. In a conventional situation, a supply-driven distribution system is mainly based on

Note: For a $150 apparel piece.Source: Adapted from the Wall Street Journal and Onestop Internet Inc. Conventional retail and e-commerce have very different cost structures even if they provide the same goods. The above cost structure is derived from the sales of high-end apparel (jeans). Both the retailer and e-retailer

The growth of online retail sales incited the development of new logistics structures through functional specialization, particularly since e-commerce is based on parcel deliveries. This implies the setting of seven particular types of facilities, each addressing the freight distribution of parcels at a specific scale and scope. In standard e-commerce

The retail sector has experienced a notable evolution of its logistics in recent decades with globalization and e-commerce being the factors having the most significant impacts. This evolution has involved new and more effective forms of distribution and can be summarized in four phases: Each of these phases in the

Although several aspects of e-commerce are perceived as conventional retailing, it can better be understood from a freight distribution perspective since the distribution and delivery aspects are fundamental. Because of its operational characteristics, e-commerce has four fundamental impacts on freight distribution: Significant changes in contemporary logistics and freight distribution are thus

The main value-added logistics activities are part of what can be generally referred to as warehousing, which can involve a wide array of activities: Simple storage, distribution, and order picking are part of the inventory management systems of manufacturers, distributors, and retailers. Quality control (inspection) and testing of products before

Logistic zones offer advantages (value proposition) related to their geography, particularly in terms of land availability and accessibility, and related to their operations, such as economies of agglomeration: Geographical advantages. The core geographical advantage of a logistics zone is the provision of a real estate base available on the market

Photo: Dr. Jean-Paul Rodrigue, 2013. The grocery sector is characterized by a particular set of challenges for freight distribution. Demand is constant and of high volume, but since each store meets a local demand (different incomes and preferences), distribution centers of large grocery chains must meet complex orders of hundreds