A new taxonomy of fourth-party logistics: a lexicometric-based classification

Abstract

PurposeThis paper aims to elaborate on current research on fourth party logistics “4PL” by offering a taxonomy that provides a deeper understanding of 4PL service offerings, thus drawing clear frontiers between existing 4PL business models.Design/methodology/approachThe authors collected data using semi-structured interviews conducted with 60 logistics executives working in 44 “4PL” providers located in France. Using automatic analysis of textual data, the authors combined spatial visualisation, clustering analysis and hierarchical descending classification to generate the taxonomy.FindingsTwo key dimensions emerged, allowing the authors to clearly identify and distinguish four 4PL business models: the level of reliance on interpersonal relationships and the level of involvement in 4PL service offering. As a result, 4PL providers fall under one of the following business models in the taxonomy: (1) The Metronome, (2) The Architect, (3) The Nostalgic and (4) The Minimalist.Research limitations/implicationsThe study focuses on investigating 4PL providers located in France; thus, future studies should explore the classification of 4PL business models across different cultural contexts and social structures.Practical implicationsThe findings offer valuable managerial insights for logistics executives and clients of 4PL to better orient their needs, the negotiations and the contracting process with 4PLs.Originality/valueUsing a Lexicometric analysis, the authors develop taxonomy of 4PL service providers based on empirical evidence from logistics executives; the work addresses the existing confusion regarding the conceptualisation of 4PL firms with other types of logistical providers and the role of in/formal interpersonal relationships in the logistical intermediation.