CNF to Operate 4PL For General Motors
General Motors Corp. and CNF Inc. have created a joint venture company to serve as the automotive giant’s 4PL — a fourth-party logistics service provider.
The automaker already uses third-party firms, and that is part of the problem, according to John Grough, director of global logistics at GM. “We have too many providers” of logistics services, he said.
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The creation is a limited liability company called Vector Supply Chain Management. When fully operational, it will be in charge of GM’s sprawling $5-billion-a-year worldwide transportation budget.
Unlike a mere 3PL, which just manages carriers for a shipper, this new layer of management will orchestrate the movements of both carriers and third-party logistics providers.
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