For a few decades, a new model of logistics service providers (LSP) has appeared and played the role of integrating all operations of the supply chain. This model is known as a logistics integrator, or fourth party logistics (4PL). 4PL has emerged as an ideal configuration for enterprises around the world to effectively utilize their resources and obtain cost reduction across the supply chain. With increasing competition among enterprises, customers’ requirements for complicated services, and global supply chain management, the limitations of inbound services from LSPs have become obstacles to their development. As a result, transformation into 4PL is inevitable for LSPs in the global logistics market. This paper aims to analyze the role, characteristics, and benefits of 4PL. A model for transformation into 4PL for local LSPs in Vietnam is constructed to identify impacting factors. The results point out six factors influencing the transformation process, as well as three important capabilities of 4PL.

Purpose: The purpose of this paper is to investigate the effectiveness of strategic logistics outsourcing through the implementation of 4PL to support the development of competitive advantage for manufacturing firms. Design/methodology/approach: Applying the strategic logistics outsourcing theory along with the resource-based view of competitive advantage, the authors point out the vital role of strategic logistics outsourcing in the manufacturing firm competitiveness. The data was collected using questionnaires with 30 manufacturing firms and analysed on effectiveness statistics and t-test to determine the effect of strategic logistics outsourcing on developing the competitive advantage for manufacturing firms. Findings: The findings indicate that cost reduction, efficient utilization of resources in the supply chain, and ICT application in 4PL services are key drivers to the competitive advantage of manufacturing firms. Research/practical implications: The research proposes to use a 4th party logistics as a strategic logistics outsourcing provider for achieving the competitive advantage for manufacturing firms. Originality/value: This is one of the first studies that provide an empirical analysis on the effect of strategic logistics outsourcing in developing the competitive advantage for manufacturing firms.