LOGISTICS PARTNER SUPPLIER PORTFOLIO ANALYSIS: A CASE STUDY OF FOURTH-PARTY LOGISTICS COMPANY

Abstract

Key success factors of fourth-party logistics service providers are continuity of service, consistency, quality service, wide range of available services, flexibility and transparency. However, the fourth-party logistics service provider does not own the assets such as fleets and drivers. They need to deliver these values through their logistics service supplier. Consequently, the supplier portfolio analysis and strategy to better manage the portfolio is indispensable for the fourth-party logistics company. This study discusses the case of a fourth-party logistics service provider in France. The aeronautic manufacturer outsources all of their logistics activities to this provider. The objective of the study is to analyse each supplier, develop supplier portfolio and provide strategy and recommendation accordingly. Point Allocation Method and Supplier Portfolio modified from Portfolio Matrix refined by Kraljic (1983) are applied as the methodology.