Conceptual model of the fourth party logistics (4PL) services. Case of Lithuania

Abstract

Logistics is concurrent part of every enterprise activity which requires for certain quantity of human and financial resources. Realizing this circumstance as well as benefits that logistics system can provide, many leading companies got rid of their own logistics departments and transferred their activities to third party intermediaries. In Lithuania there is a common business practice to use different intermediaries; mainly third party (3PL) logistics services providers. Meanwhile fourth party logistics (4PL) is completely new business practice in Lithuania. The overall goal of presented article is to explain the essence of 4PL logistics services and through the comparison of theoretical and practical models distinguish key differences and main drivers that might be important for the creation of conceptual model of 4PL services system development in Lithuania.