Supply Chain Monitoring: LLPs and 4PL Providers as Orchestrators

Abstract

In the past three decades, many firms have chosen to outsource logistics operations management to specialized suppliers called logistics service providers (LSPs). This managerial reality has been described and analyzed extensively in academic studies in marketing, strategic management and logistics management. More recently, a new generation of providers, called LLPs (lead logistics providers) and 4PL (fourth party logistics) providers, have radically altered the logistics industry. They notably offer complete logistics service without necessarily possessing the physical assets (means of transport, warehouses, etc.). These providers are gradually becoming orchestrators within supply chains. This article explores this little known reality that portends a strategic disruption, based on a case study of a global LSP.