CNF to Operate 4PL For General Motors

December 20, 2000 10:34 AM, EST

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 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.

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.

For the full story, see the Dec. 18 print edition of Transport Topics. Subscribe today.