Process Control and Simulation for the Fourth Party Logistics Using Value Chain Analysis

We present an approach in which the business process in The Fourth Party Logistics (4PL) can be integrated and optimized by using value chain analysis. For the purpose of reducing Bull-whip effect of 4PL, we propose the value chain framework, introduce the value chain calculating method for manufacture, design a business process operation model for 4PL value chain integration simulation, and give an application instance. The result of the present work implies that Bull-whip effect is more obvious to Make-to-Order partner than that of Make-to-Stock partner. Value Chain Integrations Platform can improve the information integration and continuously supervise the performance of 4PL, enhance the control of market changes, reduce the loss and find new opportunities. It is useful for cooperation and unexpected processes for 4PL.