Utilising 4PL solutions to drive efficiency on major capital projects

Abstract

The Australian resources sector is demanding solutions that will help deliver projects more cost efficiently and with better productivity. This is seeing a shift towards specialist contractors overseeing non-core functions for operators in the sector, reducing their management overheads and allowing for a greater focus on core operations. As a result, there has been an emergence of fourth-party logistics (4PL) and supply chain solutions that centrally manage the complexities of logistics and the supply chain on behalf of the client. Operators have struggled in the past to gain accurate and timely reports on the status of material orders. A 4PL and supply chain model leverages synergies that simplify processes and drive better commercial outcomes. An experienced and reliable 4PL provider will bring value and a re-engineered approach to a major project, as it identifies appropriate suppliers, sources technically acceptable materials, services at the best price, monitors and expedites orders to completion, and designs and plans the delivery, distribution, storage, collection and final removal of materials, waste scraps and surplus. By integrating logistics into the entire end-to-end solution, companies can overcome the supply chain and logistics challenges that often hamper projects, leading to cost and schedule over-runs. This extended abstract will analyse the development and implementation of a 4PL solution, referencing lessons of and experiences from, some of the world’s largest resource projects.