Process reengineering by using the 4PL approach

Abstract

Purpose – Sectors with high transport volumes face the challenge of reengineering existing processes. Furthermore, new models that support transportation processing are required. One possible model would be a fourth party logistics service provider (4PL) approach in order to increase the efficient use of resources. The purpose of this paper is to describe a method for reengineering a transportation handling process using the 4PL approach. Design/methodology/approach – Based upon a case study approach existing processes for transportation handling are modelled. Specifications of and definitions for the 4PL approach are compiled and analysed through a literature review. With the help of expert interviews essential functions are identified and the target model is validated. Findings – The results of the effort demonstrate that the application of a 4PL approach facilitates an improved transportation process. This may be due to the modification of the IT and communication technology (ICT) that have been applied. Based upon expanded planning horizons an improved planning of orders, a strengthening of the competencies of the involved actors were observed. Practical implications – Transportation handling in the agricultural sector is of increasing importance in light of the need to feed a growing global population under the condition of limited productive land for agriculture. This paper describes the alterations in the ICT infrastructure as well as the resulting organisational and technical implications, if a 4PL is used. Originality/value – The 4PL approach is an issue that is increasingly discussed in scientific publications. Furthermore, this approach has experienced new opportunities for implementation due to recent developments in ICT.