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The value a 4PL provider can contribute to an organisation

Alan Win (Institute of Transport & Logistics Studies, University of Sydney, Sydney, Australia Institute of Food Nutrition & Human Health, College of Science, Massey University, Auckland, New Zealand)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 10 October 2008

8099

Abstract

Purpose

The purpose of this research is to understand the value a fourth‐party logistics provider (4PL) can create within an organisation and to identify an appropriate measure of such value creation.

Design/methodology/approach

The paper presents a conceptual model that is based on research of 4PL implementations within the alcoholic beverage industry.

Findings

This paper presents a framework by which contribution by 4PL's to organisations might be valued.

Research limitations/implications

Future research may be widened to include financial and service measures within customers and suppliers thereby considering the wider value chain for a given commodity where a 4PL is involved in facilitating delivery of the goods or services.

Practical implications

The paper assumes that 4PL providers have the requisite skill set to manage and deliver added value versus an in‐house solution.

Originality/value

This paper offers insights into the pre‐requisite conditions for a company to consider outsourcing to a 4PL provider, the conditions/attributes that contribute to securing a 4PL relationship, the value that can be created through use of a 4PL and a method by which to assess the creation of value.

Keywords

Citation

Win, A. (2008), "The value a 4PL provider can contribute to an organisation", International Journal of Physical Distribution & Logistics Management, Vol. 38 No. 9, pp. 674-684. https://doi.org/10.1108/09600030810925962

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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