5 - Logistics Parties

Abstract

This chapter provides an overview and applications on the concept of 3PLs. It investigates new generations of logistics parties, including 4PL and 5PL. It later provides an in-depth study on the concept of 3PLs. The increasing demand by a broad range of firms to outsource logistics functions has led to an increasingly developing market for logistics. This demand has resulted in considerable attention and more investigations in the important concept of logistics parties. The 3PL industry is still growing. Among the priorities that 3PL providers are currently facing are regional expansion, broadening services to meet the needs of current and future customers, integrating information technologies, and developing relationships with customers and other business firms. However, there are also arguments that the 3PL industry has reached the mature stage of its life cycle after two decades of evolution. Now it is time for other parties to grow in both theoretical and practical directions. Although rapidly developing, it is surprising to see that little research has been done on other types of logistics parties. All the 3PL issues, including selection, behavioral aspects, and operational issues, may be considered as research topics for newer generations of logistics parties. Finally, it is necessary to investigate these topics more deeply in order to appropriately utilize the talents and capabilities of parties and streamline a more integrated, cost-effective supply chain.