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Business and Management.
Increased competition, geographically expanded marketplaces, technology replication and an
ever discerning consumer base, are reasons why companies need to regularly reappraise
their competencies in terms of activities and functions they perform themselves. Where viable
alternatives exist, companies should consider outsourcing of non-core activities and functions.
Within SCM (Supply Chain Management) it could be preferable if a “one stop shop” existed
for companies seeking to outsource functions identified as non-core. “Traditionally” structured
LSP’s who have concentrated their service offer around providing warehousing and transport
activities are potentially at a crossroads – clients and potential clients requiring “new” services
which could increase LSP’s revenues if provided, whilst failure to provide could perhaps result
in clients seeking outsourced services elsewhere.
Mee, J., Sweeney, E.: From 3LSP (third party logistics service provider) to 4LSP (fourth party logistics service provider). A case study from Ireland. In Enhancing Competitive Advantage through Supply Chain Innovation, Proceedings of the 9th Annual Conference of the Logistics Research Network (LRN2004), pp.391-397. Dublin, September 2004.