The value a 4PL provider can contribute to an organisation

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.