Transport Logistics

Fourth party logistics (4PL)

Today, most providers offer a range of services that complement the specific needs and

capabilities of their clients. The general trend, however, is for third parties to function as full-service

providers, thus ensuring that all services desired by clients can be supplied at least as completely and

cost effectively outside the organisation as within. Fourth Party Logistics (4PL), a new concept in

logistics outsourcing, is emerging as a path to surpass one-time operating cost reductions and asset

transfer of a traditional outsourcing arrangement.

A 4PL provider is a supply chain integrator that assembles and manages the resources,

capabilities, and technology of its own organisation with those of complementary service providers to

deliver a comprehensive supply chain solution. Central to the 4PL’s success is a “best of breed”

approach, which is to integrate the client’s supply chain activities and supporting technologies across

alliances between the best third party service providers, technology providers and management

consultants, thereby creating unique and comprehensive logistics solutions that cannot be achieved by

any single provider. The development of 4PL’s solutions leverage the capabilities of transport

operators, technology service providers, and business process managers to deliver a comprehensive

supply chain solution through a centralised point of contact.