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Case Analysis: A Successful Case of the Fourth Party Logistics
In Britain, Accenture and ——Connect2020, a subsidiary of Time Water Co., Ltd., have also cooperated with the fourth party logistics. Thames Water is a British water supply company with a turnover of over $2 billion. Connect2020 was established to provide logistics and procurement services for the water supply industry. Connect2020 outsources all its services to ACTV, which is managed and operated by Accenture. ACTV's annual turnover is150,000 USD, and its main business includes purchasing, order management, inventory management and distribution management. At present, the operating results include: the total cost of supply chain is reduced by 10%, the inventory level is reduced by 40%, and the unfinished orders are reduced by 70%.

In Europe, Accenture and Fiat's subsidiary, New Holland, established a joint venture, New Holland Logistics. The company specializes in service spare parts logistics. The company is 80% owned by New Holland and 20% owned by Accenture. New Holland has invested in warehouses, 775 employees, capital investment and joint venture operation and management capabilities in six countries. Accenture has invested its expertise in management, information technology, operation management and process reengineering. Spare parts management business includes planning, purchasing, inventory, distribution, transportation and customer support. The total return on investment in the past seven years is $67 million. About 2/3 of the savings come from the reduction of operating costs, 20% from inventory management, and 15% from the savings of freight. At the same time, New Holland Logistics has achieved more than 90% order completion accuracy.

In the United States, Ryder integrated logistics and information technology giant IBM and Accenture, the initiator of the fourth party logistics, formed a strategic alliance, which enabled Ryder to have professional knowledge in technology and supply chain management. Without the participation of the fourth party logistics, Ryder needed decades to accumulate these professional knowledge.