Transformation into 4PL: The case of local logistics service providers in Vietnam

Abstract

For a few decades, a new model of logistics service providers (LSP) has appeared and played the role of integrating all operations of the supply chain. This model is known as a logistics integrator, or fourth party logistics (4PL). 4PL has emerged as an ideal configuration for enterprises around the world to effectively utilize their resources and obtain cost reduction across the supply chain. With increasing competition among enterprises, customers’ requirements for complicated services, and global supply chain management, the limitations of inbound services from LSPs have become obstacles to their development. As a result, transformation into 4PL is inevitable for LSPs in the global logistics market. This paper aims to analyze the role, characteristics, and benefits of 4PL. A model for transformation into 4PL for local LSPs in Vietnam is constructed to identify impacting factors. The results point out six factors influencing the transformation process, as well as three important capabilities of 4PL.

An Application of TRIZ Inventive Approach in Development Strategy into Fourth-party Logistics

“…The core goals of our study are to affirm the effective application of TRIZ in service field and to develop strategies for local LSPs in Vietnam to transform into 4PL through the implementation of TRIZ inventive methodology on the identified capabilities of 4PL under the research of Porter (1996), Walters and Rainbird (2007), Frost and Sullivan (2014), Fulconis et al (2006), Rajaguru andMatanda (2013), andDiem et al (2023). Three main capabilities of 4PL, including value chain creation, integration of multiple 3PL providers' activities, and management of global supply chain are considered as problems in which local LSPs must identify contradictions and determine relevant innovative solutions.…”

A systematic literature review of logistics services outsourcing

“…Companies across the globe are sourcing activities to LSPs to bring down costs, expenditures, and SC complexities, as well as to improve logistics potency [ 25 ], as well as to decrease labor costs, surplus stocks, the number of depots, lorries, and deformation [ 26 ], and to offer well-managed warehouse and SC solutions to both manufacturers and retailers. The increase in numerous enterprises’ global SC resulted in the emergence of outsourcing [ 27 ]. Several businesses have benefited from LSPs services regarding productivity, adaptability, and increased customer satisfaction [ 28 ].…”