Comparing third-party logistics network and fourth-party logistics network using social network analysis approach

Abstract

Logistics services are keys to the success of almost all the manufacturing firms. Logistics companies have great responsibility to minimise the supply chain risks. Third-party logistics provider has limited role in the supply chain, whereas fourth-party logistics provider performs series of operations in the supply chain. In this study, the role of logistics service providers has been quantified and the structure of 3PL and 4PL network is compared using social network analysis approach. A case study on logistics network has been discussed in this paper which is analysed with the help of social network analysis approach. The role of individual players in 3PL and 4PL has been described based on the outcomes of social network analysis of the networks. The work is an attempt to understand the role of key players in the network and thus can aid in making important decisions while collaborating with partners and making negotiations.