What factors would lead a third-party logistics (3PL) customer to consider using a fourth-party logistics (4PL) provider?

Abstract

The need for supply chain integration, the use of multiple 3PL providers by individual companies, and the growing complexity of 3PL's contracts, has led to interest in a new concept called fourth-party logistics (4PL), where companies outsource the whole supply chain to a fourth party assembles, coordinates and integrates the capabilities of all the 3PL providers, with the power to design, build and run comprehensive optimized supply chain solutions. Unfortunately there aren't many studies about this business model, so the researcher surveyed 174 logistics consultants and high level logistics management professionals, to explore the 4PL model, and identify the most important factors that would lead a 3PL customer to consider using a 4PL provider, the major benefits that a costumer might expect from a 4PL provider, the obstacles that companies could face when they use a 4PL provider, 4PL users satisfaction with the 4PL providers performance, 3PL providers satisfaction with the relationship with the 4PL providers, and predict the future of the 4PL model.