One of the most significant revolution of the logistics industry is the emergence of a new generation of logistics service providers, called fourth party logistics (4PL).The 4PL involves not only the management of a client’s supply chain, but also the development and improvement of their supply chain strategy. 3PL service providers offer far more tactical services (Hickson et al., 2008, p. 11).
Their function is to provide the supply chain members with a customized service, based on a flawless coordination of logistical resources mobilized from the various firms. 4PLs can be considered as asset-free logistics middlemen offering expertise for the establishment and control of complex logistics systems, including logistics consulting and the organization of information infrastructure, transport, logistics as well as financial services that are needed”. (Schramm, 2012, p. 154).
This article suggests the following key success factors for 4PL service providers to manage logistics more effectively.