Fourth Party Logistic Market Scope
Fourth Party Logistics is a concept in supply chain management where an external party manages and integrates multiple logistics service providers (3PLs) to provide end-to-end supply chain solutions. It assembles and manages all resources, capabilities, and technology of a supply Chain and its array of providers. The goal of 4PL is to provide end-to-end supply chain solutions to improve efficiency and reduce costs for the client company. 4PL service providers are strategic partners to their clients that strive to drive supply chain efficiency, and these factors drive the market over the forecast period.
|Unit||Value (USD Million)|
|Key Companies Profiled||DHL Supply Chain & Global Forwarding (Germany), UPS Supply Chain Solutions (United States), CEVA Logistics (France), DB Schenker (Germany), Kuehne + Nagel (Switzerland), Penske Logistics (United States), XPO Logistics (United States), DSV Panalpina (Denmark), Geodis (France) and Ryder System (United States)|
The presence of both global and regional players, each offering a range of services and solutions to meet diverse customer needs. Major global 4PL providers, such as XPO Logistics, DHL Supply Chain, and DB Schenker, dominate the market with their extensive capabilities, global network, and advanced technology offerings. Regional players, like Kuehne + Nagel, GEODIS, and CEVA Logistics, also have a strong presence and often specialize in specific industries or regions. The market is competitive, driving providers to continuously innovate, expand their service portfolios, and form strategic partnerships to offer comprehensive end-to-end solutions to clients Research Analyst at AMA estimates that North America Manufacturers will contribute to the maximum growth of Global Fourth Party Logistic market throughout the predicted period.
DHL Supply Chain & Global Forwarding (Germany), UPS Supply Chain Solutions (United States), CEVA Logistics (France), DB Schenker (Germany), Kuehne + Nagel (Switzerland), Penske Logistics (United States), XPO Logistics (United States), DSV Panalpina (Denmark), Geodis (France) and Ryder System (United States) are some of the key players that are part of study coverage. Additionally, the Manufacturers which are also part of the research are Accenture (Ireland), Global4PL (United States), Logistics Plus (United States), Allyn International (United States) and Gartner (United States).
The research aims to propose a patent-based approach in searching for potential technology partners as a supporting tool for enabling open innovation. The study also proposes a systematic searching process of technology partners as a preliminary step to select the emerging and key players that are involved in implementing market estimations. While patent analysis is employed to overcome the aforementioned data- and process-related limitations, as expenses occurred in that technology allows us to estimate the market size by evolving segments as target market from the total available market.
The study have segmented the market of Global Fourth Party Logistic market by Type , by Application (Automotive, Government Organizations, Consumer Electronics, Food & Beverages, Industrial, Retail, Healthcare and Others) and Region with country level break-up.
On the basis of geography, the market of Fourth Party Logistic has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). region held largest market share in the year 2022.
Market Leaders and their expansionary development strategiesIn January 2023, CEVA Logistics, a leading global logistics company partnered with project44, a global supply chain visibility platform. This collaboration enhanced ocean shipment visibility and provide real-time tracking and analytics to customers. By leveraging project44's advanced technology and data-sharing capabilities, CEVA Logistics offer its customers improved visibility into their ocean shipments, enabling them to monitor their cargo's progress, anticipate potential disruptions, and make informed supply chain decisions.
In May 2023, DHL Express launched the GoGreen Plus option for its air cargo product. This initiative was aim to provide customers with an environmentally friendly shipping option by offsetting the carbon emissions generated during the transportation of their shipments. By selecting the GoGreen Plus option, customers can support climate protection projects and contribute to the reduction of greenhouse gas emissions. DHL Express continues to demonstrate its commitment to sustainability by offering this eco-conscious solution to its air cargo customers.
Influencing Trend:Growing demand for end-to-end visibility and control over the entire supply chain.
Market Growth Drivers:Increasing demand for simple, efficient supply chain systems, Rising Demand for Fourth Party Logistics as All-In-One Management System and Booming E-Commerce Industry Presents Opportunities for 4PL Providers to Offer Specialized Services
Challenges:Increasing Complexity of Supply Chains to manage their logistics operations.
Restraints:High Cost of Implementation due Fuel and Infrastructure Expenses
Opportunities:Increasing Digitization and Technology Adoption Such As Cloud Computing, Data Analytics, Internet of Things (IoT), and Artificial Intelligence in 4PL
Key Target AudienceFourth Party Logistics Service Provider, Venture Capitalists and Private Equity Firms, New Entrants/Investors, Strategic Business Planners, Government Regulatory, Research Organizations, End-Use Industries and Others