The Process Integration Evaluation and Providers Selection of the Fourth Party Logistics

The present study puts forward a new method for supply chain integration of the Fourth Party Logistics (4PL), based on value chain analysis method and modern optimal control theory. The proposed method can be described as follows. First, the supply chain of 4PL was defined and transformed into process design requirements based on the benchmarking and quality function deployment (QFD) method. Second, the optimal model of 4PL is given using multipurpose optimal theory in order that the whole maximum value of partners within 4PL is achieved under time, quality, cost, and service constraints. Third, appraisal system of process integration solution is set up and estimate standard of supply chain of 4PL reference model is given. In the end, we proposed the evaluation method of 4PL integration solution based on fuzzy theory and the Analytic Hierarchy Process (AHP) method. The proposed method laid the theoretical foundation and tangible measures for process integration of supply chain of 4PL for difficult to achieve synergy from supplier with dynamic behaviors, organization autonomy and distribution.