Using fourth‐party logistics management to improve horizontal collaboration among grocery retailers

Purpose – There is a paucity of literature considering horizontal collaboration among grocery retailers, suppliers, and third‐party logistics (3PL) providers. This paper seeks to investigate benefits of and barriers to the use of fourth‐party logistics (4PL) management as a catalyst for horizontal collaboration.Design/methodology/approach – Three suppliers, three logistics service providers (LSPs), and one grocery retailer participated in semi‐structured interviews for this exploratory qualitative study.Findings – Large LSPs can establish 4PL management but the significant investment required to do so is a deterrent. Interviewees believed 4PL would negatively influence the grocery retailer‐supplier dynamic but simultaneously would provide key potential benefits. Retaining supply chain control means more to grocery retailers than cost efficiencies realised through horizontal collaboration.Research limitations/implications – Fierce competition among major grocery chains means that most are unwilling to part...

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