Scenario 1

Scenario 2

Scenario 3

Scenario 4

Value creation

MNC 1 can focus on customer engagement and value

More opportunities for LSPs due to better bargaining power

MNC2 can focus on customer issues with the help of 4PL

MNC3 can focus on production and customer value

Resource dependency

MNC1 reduces local asset and dependency on local resources through standardized interfaces.

Resource dependency is reduced due to the improved availability of resources

Decoupling local resources through the 4PL

MNC3 decouples from managing the inventories from multiple suppliers

Transaction cost

Reduce service cost by local resources and coordination cost by standard platform

Cost saving by resource sharing and improve resource utilization

Simplify interface to LSPs to reduce coordination cost

Reduce coordination cost (with suppliers) and inventory and obsolescence costs

Flexibility and scalability

Flexibility and scalability improved with less assets and standardized interfaces to LSPs

More flexible and scalable in resources and can handle bigger orders using partner resources

More flexible to secure local resources

More flexible and scalable with 3PL managing the inventories

Reliability and sustainability

Reliability is neutral

Sustainability improved due to higher value-add

Reliability is neutral; Sustainability improved due to more business

Low reliability due to use of external 4PL. Sustainability improved due to more customer-focus and opportunities

Less reliable inventory control due to outsourcing;

Sustainability improved due to focus on core business