IDEAS home Printed from https://ideas.repec.org/a/gam/jlogis/v3y2019i1p7-d204844.html
   My bibliography  Save this article

Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future

Author

Listed:
  • Hans-Joachim Schramm

    (Department of Global Business and Trade, Institute for Transport and Logistics Management, WU Wirtschaftsuniversität Wien, 1090 Wien, Austria
    Department for Operations Management, Copenhagen Business School, 2000 Frederiksberg, Denmark)

  • Carolin Nicole Czaja

    (Department of Global Business and Trade, Institute for Transport and Logistics Management, WU Wirtschaftsuniversität Wien, 1090 Wien, Austria)

  • Michael Dittrich

    (Accenture Strategy—Supply Chain Management ASG, Accenture, 8001 Zürich, Switzerland)

  • Matthias Mentschel

    (Accenture Strategy—Supply Chain Management ASG, Accenture, 80807 München, Germany)

Abstract

This paper aims to analyze the potential future of the 4PL concept based on expert opinions with special regard to the influence of digitalization coming with a disruptive trans-formation of supply chains. Service arrangements, provider capabilities and benefits resulting from a 4PL partnership are compared in current and future configurations. The research follows an explorative mixed methods approach with semi-structured interviews followed by an expert panel. This builds a basis for an online survey questionnaire to inquire on important future aspects for the 4PL concept by a sample of respondents from multinational companies. Our results show a clear trend away from simply organizing transportation and logistics activities towards the provision of an IT platform as well as further value-added service activities such as planning, analytics and monitoring. Along with this, IT capabilities appear to be an important differentiator for 4PL providers in the future. Moreover, relationships between 4PL providers and their clients become closer and more strategic, which leads to a customer valuing not only direct cost reductions but rather improvements resulting from optimized operations through superior analysis and planning functions.

Suggested Citation

  • Hans-Joachim Schramm & Carolin Nicole Czaja & Michael Dittrich & Matthias Mentschel, 2019. "Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future," Logistics, MDPI, vol. 3(1), pages 1-17, February.
    • Handle: RePEc:gam:jlogis:v:3:y:2019:i:1:p:7-:d:204844
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2305-6290/3/1/7/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2305-6290/3/1/7/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hsiao, H.I. & Kemp, R.G.M. & van der Vorst, J.G.A.J. & (Onno) Omta, S.W.F., 2010. "A classification of logistic outsourcing levels and their impact on service performance: Evidence from the food processing industry," International Journal of Production Economics, Elsevier, vol. 124(1), pages 75-86, March.
    2. Wang, Gang & Gunasekaran, Angappa & Ngai, Eric W.T. & Papadopoulos, Thanos, 2016. "Big data analytics in logistics and supply chain management: Certain investigations for research and applications," International Journal of Production Economics, Elsevier, vol. 176(C), pages 98-110.
    3. Laurence Saglietto & Cécile Cézanne, 2015. "A Bibliometric Analysis Of Research On 4pl," Articles, International Journal of Transport Economics, vol. 42(4).
    4. François Fulconis & Nollet Jean & Paché Gilles, 2016. "Purchasing of logistical services: A new view of LSPs’ proactive strategies," Post-Print hal-01430557, HAL.
    5. Pfohl, Hans-Christian & Wagner, Stefan & Ries, Andreas & Berbner, Ulrich & Witte, Henning, 2014. "4th Party Logistics – Chancen und Herausforderungen. Neue Wege im Logistikmanagement," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 70591, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 81032, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. François Fulconis & Laurence Saglietto & Gilles Paché, 2007. "Strategy dynamics in the logistics industry: a transactional center perspective," Post-Print hal-02304292, HAL.
    8. Cécile Cézanne & Laurence Saglietto, 2015. "Redefining the Boundaries of the Firm: the Role of 4PLs," Post-Print hal-00926462, HAL.
    9. François Fulconis & Laurence Saglietto & Gilles Paché, 2006. "Exploring new competences in the logistics industry: the intermediation role of 4PL," Post-Print hal-02304266, HAL.
    10. Rajbir Singh Bhatti & Pradeep Kumar & Dinesh Kumar, 2009. "Integrated model for selection of third party service providers by global lead logistics providers," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 1(2/3), pages 187-202.
    11. Krakovics, Fabio & Eugenio Leal, José & Mendes Jr., Paulo & Lorenzo Santos, Rafael, 2008. "Defining and calibrating performance indicators of a 4PL in the chemical industry in Brazil," International Journal of Production Economics, Elsevier, vol. 115(2), pages 502-514, October.
    12. Lu, Qing & Meng, Fanwen & Goh, Mark, 2014. "Choice of supply chain governance: Self-managing or outsourcing?," International Journal of Production Economics, Elsevier, vol. 154(C), pages 32-38.
    13. Nancy Leech & Anthony Onwuegbuzie, 2009. "A typology of mixed methods research designs," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(2), pages 265-275, March.
    14. Büyüközkan, Gülçin & Feyzioglu, Orhan & Sakir Ersoy, Mehmet, 2009. "Evaluation of 4PL operating models: A decision making approach based on 2-additive Choquet integral," International Journal of Production Economics, Elsevier, vol. 121(1), pages 112-120, September.
    15. Fosso Wamba, Samuel & Akter, Shahriar & Edwards, Andrew & Chopin, Geoffrey & Gnanzou, Denis, 2015. "How ‘big data’ can make big impact: Findings from a systematic review and a longitudinal case study," International Journal of Production Economics, Elsevier, vol. 165(C), pages 234-246.
    16. Subramanian, Nachiappan & Abdulrahman, Muhammad D. & Zhou, Xiaolai, 2014. "Integration of logistics and cloud computing service providers: Cost and green benefits in the Chinese context," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 86-98.
    17. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    18. Tim Gruchmann & Ani Melkonyan & Klaus Krumme, 2018. "Logistics Business Transformation for Sustainability: Assessing the Role of the Lead Sustainability Service Provider (6PL)," Logistics, MDPI, vol. 2(4), pages 1-19, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tim Gruchmann & Nadine Pratt & Jan Eiten & Ani Melkonyan, 2020. "4PL Digital Business Models in Sea Freight Logistics: The Case of FreightHub," Logistics, MDPI, vol. 4(2), pages 1-14, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tim Gruchmann & Nadine Pratt & Jan Eiten & Ani Melkonyan, 2020. "4PL Digital Business Models in Sea Freight Logistics: The Case of FreightHub," Logistics, MDPI, vol. 4(2), pages 1-14, May.
    2. Ciampi, Francesco & Faraoni, Monica & Ballerini, Jacopo & Meli, Francesco, 2022. "The co-evolutionary relationship between digitalization and organizational agility: Ongoing debates, theoretical developments and future research perspectives," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    3. Wu, Chia-Hung & Chou, Che-Wei & Chien, Chen-Fu & Lin, Yun-Siang, 2024. "Digital transformation in manufacturing industries: Effects of firm size, product innovation, and production type," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    4. Qiuxia Ren & Jigan Wang, 2023. "Research on Enterprise Digital-Level Classification Based on XGBoost Model," Sustainability, MDPI, vol. 15(3), pages 1-13, February.
    5. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    6. Chwiłkowska-Kubala, Anna & Cyfert, Szymon & Malewska, Kamila & Mierzejewska, Katarzyna & Szumowski, Witold, 2023. "The impact of resources on digital transformation in energy sector companies. The role of readiness for digital transformation," Technology in Society, Elsevier, vol. 74(C).
    7. Ander, Veronika & Cihelka, Petr & Tyrychtr, Jan & Novák, David, 2022. "Towards Compromise User Experience Design in Ambient Intelligent Environment," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 14(2), June.
    8. Jinqiu He & Huiwen Su, 2022. "Digital Transformation and Green Innovation of Chinese Firms: The Moderating Role of Regulatory Pressure and International Opportunities," IJERPH, MDPI, vol. 19(20), pages 1-21, October.
    9. Severin Oesterle & Arne Buchwald & Nils Urbach, 2022. "Investigating the co-creation of IT consulting service value: empirical findings of a matched pair analysis," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 571-597, June.
    10. Cong Cheng & Hongfang Cui, 2024. "Combining digital and legacy technologies: firm digital transformation strategies—evidence from Chinese manufacturing companies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    11. T. O. Tolstykh & L. A. Gamidullayeva & E. V. Shkarupeta, 2018. "Key factors of development of the industrial enterprises in the conditions of the industry 4.0," Russian Journal of Industrial Economics, MISIS, vol. 11(1).
    12. Tina C. Ambos & Katherine Tatarinov, 2022. "Building Responsible Innovation in International Organizations through Intrapreneurship," Journal of Management Studies, Wiley Blackwell, vol. 59(1), pages 92-125, January.
    13. Hua Zhang & Qiwang Zhang, 2023. "How Does Digital Transformation Facilitate Enterprise Total Factor Productivity? The Multiple Mediators of Supplier Concentration and Customer Concentration," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    14. Sebastian Kussl & Andreas Wald, 2022. "Smart Mobility and its Implications for Road Infrastructure Provision: A Systematic Literature Review," Sustainability, MDPI, vol. 15(1), pages 1-20, December.
    15. Coskun-Setirek, Abide & Tanrikulu, Zuhal, 2021. "Digital innovations-driven business model regeneration: A process model," Technology in Society, Elsevier, vol. 64(C).
    16. Ge Zhang & Yuxiang Gao & Gaoyong Li, 2023. "Research on Digital Transformation and Green Technology Innovation—Evidence from China’s Listed Manufacturing Enterprises," Sustainability, MDPI, vol. 15(8), pages 1-23, April.
    17. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    18. Sascha Kraus & Paul Jones & Norbert Kailer & Alexandra Weinmann & Nuria Chaparro-Banegas & Norat Roig-Tierno, 2021. "Digital Transformation: An Overview of the Current State of the Art of Research," SAGE Open, , vol. 11(3), pages 21582440211, September.
    19. Huifang Liu & Jin-Sup Jung, 2024. "Impact of Digital Transformation on ESG Management and Corporate Performance: Focusing on the Empirical Comparison between Korea and China," Sustainability, MDPI, vol. 16(7), pages 1-17, March.
    20. Rugiubei Radu & Pînzaru Florina, 2022. "The digitalization of supply chain management in Romanian companies: an introductive research," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 1295-1305, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlogis:v:3:y:2019:i:1:p:7-:d:204844. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.