Gartner Further Defines 4PL Space in 2024 Market Guide
Gartner has released the 2024 Market Guide for 4PL (Fourth Party Logistics), which provides an updated definition of a 4PL: “A fourth-party logistics (4PL) is a supply chain services provider that manages the design, build, run, measurement and orchestration of all or part of an end-to-end logistics network for a fee. It coordinates logistics operations via internal and/or external parties, delivering visibility, management control and optimization through an integrated technology platform.”
The report, written by analysts Matt Beckett and David Gonzalez, discusses industry trends as shippers pursue logistics outsourcing strategies that require a partner who can provide a simplified connection to an increasingly complex logistics and supply chain environment.
According to the Market Guide: “The 4PL outsourcing model is often adopted by organizations to simplify and govern complicated logistics tasks through improved visibility, process automation and data management. This transformation in logistics is enabling organizations to focus their internal agenda on growth, supply chain integration and transformation. Logistics leaders should be cautious about the amount of control their 4PLs have in the supply chain services they provide and, therefore, govern their span of responsibility fittingly.”
The Market Guide also highlights the global 4PL market: “The extension beyond third-party logistics (3PLs)-centric logistics services to a broader supply-chain-aligned 4PL service is expected to continue to gain momentum in the coming years. The 4PL logistics market was valued at $55.75 billion in 2023 and is expected to reach $104.54 billion by the end of 2030, with a compound annual growth rate (CAGR) of 8.39% for the period 2024 through 2030. 4PL adoption and uptake is cascading from typical Tier 1 organizations into the mid-tier, as more logistics functions seek enhanced value and solutions from their logistics partners.”
Redwood Logistics (Redwood), named a Representative Vendor in the report for the second straight year, has established itself as a trusted advisor for shippers looking to fully orchestrate their logistics execution and supply chain technology. Redwood’s proprietary Integration Platform as a Service (iPaaS), RedwoodConnect™, empowers companies to tailor their logistics solutions to meet specific supply chain requirements, an essential backbone to Redwood’s modern 4PL service. Redwood’s ability to orchestrate both the physical and digital supply chains contributed to the company being named among the sixteen 4PL vendors identified by Gartner.
“Our ability to orchestrate logistics execution and supply chain technology has positioned Redwood as a 4PL leading vendor,” said Mark Yeager, CEO, Redwood. ” With innovations like our sustainability tool, Redwood Hyperion, the expansion of our cross-border solution, Redwood Mexico, and new partnerships integrated into RedwoodConnect, we’re enhancing every aspect of our modern strategy, setting a new standard for what it means to be a 4PL.”
Redwood continues to deliver exceptional service to over 1,200 customers, including notable names such as Honda, Ashley Furniture, Do it Best, Hollister, Taylor Farms, and more. Of the 1,000+ employees at Redwood, half of the workforce is focused on physical logistics management, and the other half on supply chain technology solutions, displaying Redwood’s commitment to blending physical and digital supply chains. All told, Redwood has $5.5 billion in freight under management.
To read the newly released Market Guide, compliments of Redwood, follow the link here.
