Fourth Party Logistic Model (4PL)
Fourth Party Logistic Model (4PL). The manufacturer does not only outsource the organisation of its logistic tasks to third parties, but also the management thereof. Fourth party logistic service providers often check the entire supply chain. The organisational and executive activities are again often outsourced to other parties.
Fourth party logistic service providers often have no means of transport and warehouses (non-asset based logistics). The fourth party logistic role demands intense involvement from the service supplier in the client’s business activities. After all, not only does the latter outsource the execution but also the monitoring of the logistic processes. The short-term thinking with collaboration agreements purely on the basis of cost-related reasons is replaced with long-term partnerships where quality of the service will play a primary role, and which involves shared risks and benefits.