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Fourth-Party Logistics (4PL): Becoming a Supply Chain Orchestrator

In: Level Up Your Logistics

Author

Listed:
  • Scott McDonald

    (RMIT University)

  • Minh Duong Kim Ngo

    (RMIT University)

Abstract

This chapter explores the evolution of Fourth-Party Logistics (4PL) as the pinnacle of logistics service provision, where organizations transform from comprehensive logistics providers into complete supply chain orchestrators. The chapter examines the core components required for 4PL success, including strategic supply chain design, technological integration through Control Tower Platforms, and comprehensive service portfolios that create seamless supply chain solutions. It details the organizational transformation journey required to evolve from 3PL to 4PL operations, emphasizing changes in strategic mindset, organizational structure, processes, and talent development. Through multidimensional performance measurement frameworks and sophisticated risk management approaches, the chapter illustrates how 4PL providers create value by orchestrating entire supply chain ecosystems. A case study of Global Horizons Logistics demonstrates practical implementation of 4PL principles, highlighting challenges and opportunities in this evolution. The chapter concludes by examining innovation ecosystems and future trends, positioning 4PL as a strategic imperative for organizations seeking to thrive in increasingly complex supply chain environments.

Suggested Citation

  • Scott McDonald & Minh Duong Kim Ngo, 2025. "Fourth-Party Logistics (4PL): Becoming a Supply Chain Orchestrator," Springer Books, in: Level Up Your Logistics, chapter 0, pages 481-507, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-0533-3_12
    DOI: 10.1007/978-981-95-0533-3_12
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