Open Access Research Article

Fourth-Party Logistics in Off-Site Construction: A Synergy-Based Service Strategy

Authors

Behnam Karimi Department of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran.
Mohammad Mohammadpour Omran * Department of Industrial Engineering, Iran University of Science & Technology, Tehran, Iran.

https://doi.org/10.48313/scodm.v2i4.43

Downloads

Abstract

The construction Supply Chain (SC) suffers from very low productivity due to the temporary nature of projects, the complexity and extent of communication between actors, and high logistics costs. Therefore, leveraging synergy and interaction, along with the presence of an integrator, can help mitigate these challenges. Fourth-party logistics is one of the drivers that can be considered an integrator in the construction industry, given its successful implementation in other industries. This study presents a mathematical model to investigate the effect of synergy in the construction industry by taking advantage of the integrative potential of a 4PL. It also considers the interaction between contractors and 4PL, pricing for the supply of raw materials, and the choice of transportation method, thereby bringing the problem closer to reality. To validate and demonstrate the efficiency of the proposed model, GAMS, a commercial software package, is used to conduct sensitivity analyses of key variables. The results show that creating a synergistic framework between contractors and leveraging the integrative capabilities of a fourth-party logistics enterprise can significantly reduce project delivery costs and delays, suggesting the proposed model's higher efficiency than those available in the literature on the subject.

Keywords

Off-site construction Multi-project environment Synergistic logistics Fourth-party logistics Integrated management

References (41)

[1] Jin, R., Gao, S., Cheshmehzangi, A., & Aboagye-Nimo, E. (2018). A holistic review of off-site construction literature published between 2008 and 2018. Journal of cleaner production, 202, 1202–1219. https://doi.org/10.1016/j.jclepro.2018.08.195

[2] Heravi, G., Kebria, M. F., & Rostami, M. (2021). Integrating the production and the erection processes of pre-fabricated steel frames in building projects using phased lean management. Engineering, construction and architectural management, 28(1), 174–195. https://doi.org/10.1108/ECAM-03-2019-0133

[3] Wang, J., Li, Z., & Tam, V. W. Y. (2015). Identifying best design strategies for construction waste minimization. Journal of cleaner production, 92, 237–247. https://doi.org/10.1016/j.jclepro.2014.12.076

[4] Tam, V. W. Y., Fung, I. W. H., Sing, M. C. P., & Ogunlana, S. O. (2015). Best practice of prefabrication implementation in the Hong Kong public and private sectors. Journal of cleaner production, 109, 216–231. https://doi.org/10.1016/j.jclepro.2014.09.045

[5] Fard, M. M., Terouhid, S. A., Kibert, C. J., & Hakim, H. (2017). Safety concerns related to modular/prefabricated building construction. International journal of injury control and safety promotion, 24(1), 10–23. https://doi.org/10.1080/17457300.2015.1047865

[6] Monahan, J., & Powell, J. C. (2011). An embodied carbon and energy analysis of modern methods of construction in housing: A case study using a lifecycle assessment framework. Energy and buildings, 43(1), 179–188. https://doi.org/10.1016/j.enbuild.2010.09.005

[7] Wang, J., Zhao, J., & Li, W. (2019). The mathematical modeling, simulation, and practice of a multipoint synchronous lifting control case study for bridges. Mathematical problems in engineering, 2019(1), 5936434. https://doi.org/10.1155/2019/5936434

[8] Wang, Z., Hu, H., Gong, J., Ma, X., & Xiong, W. (2019). Precast supply chain management in off-site construction: A critical literature review. Journal of cleaner production, 232, 1204–1217. https://doi.org/10.1016/j.jclepro.2019.05.229

[9] Love, P. E. D., Irani, Z., & Edwards, D. J. (2004). A seamless supply chain management model for construction. Supply chain management: an international journal, 9(1), 43–56. https://doi.org/10.1108/13598540410517575

[10] Fernie, S., & Tennant, S. (2013). The non-adoption of supply chain management. Construction management and economics, 31(10), 1038–1058. https://doi.org/10.1080/01446193.2013.830186

[11] Sundquist, V., Gadde, L. E., & Hulthén, K. (2018). Reorganizing construction logistics for improved performance. Construction management and economics, 36(1), 49–65. https://doi.org/10.1080/01446193.2017.1356931

[12] Le, P. L., Chaabane, A., & Dao, T. M. (2022). BIM contributions to construction supply chain management trends: an exploratory study in Canada. International journal of construction management, 22(1), 66–84. https://doi.org/10.1080/15623599.2019.1639124

[13] Bakker, R. M. (2010). Taking stock of temporary organizational forms: A systematic review and research agenda. International journal of management reviews, 12(4), 466–486. https://doi.org/10.1111/j.1468-2370.2010.00281.x

[14] Hsu, P. Y., Angeloudis, P., & Aurisicchio, M. (2018). Optimal logistics planning for modular construction using two-stage stochastic programming. Automation in construction, 94, 47–61. https://doi.org/10.1016/j.autcon.2018.05.029

[15] Wang, Z., Hu, H., & Gong, J. (2018). Simulation based multiple disturbances evaluation in the precast supply chain for improved disturbance prevention. Journal of cleaner production, 177, 232–244. https://doi.org/10.1016/j.jclepro.2017.12.188

[16] Hussein, M., Eltoukhy, A. E. E., Karam, A., Shaban, I. A., & Zayed, T. (2021). Modelling in off-site construction supply chain management: A review and future directions for sustainable modular integrated construction. Journal of cleaner production, 310, 127503. https://doi.org/10.1016/j.jclepro.2021.127503

[17] Ekeskär, A., & Rudberg, M. (2016). Third-party logistics in construction: the case of a large hospital project. Construction management and economics, 34(3), 174–191. https://doi.org/10.1016/j.jclepro.2021.127503

[18] Thunberg, M., & Fredriksson, A. (2018). Bringing planning back into the picture--How can supply chain planning aid in dealing with supply chain-related problems in construction? Construction management and economics, 36(8), 425–442. https://doi.org/10.1080/01446193.2017.1394579

[19] Li, S., & Chen, X. (2019). The role of supply chain finance in third-party logistics industry: A case study from China. International journal of logistics research and applications, 22(2), 154–171. https://doi.org/10.1080/13675567.2018.1502745

[20] Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (1999). Designing and managing the supply chain: Concepts, strategies, and cases. McGraw-hill New York. https://www.academia.edu/download/31133595/FAI-09__PROC_5850__Brannon__R.pdf

[21] Bauknight, D. N., & Miller, J. R. (1999). Fourth party logistics: The evolution of supply chain outsourcing. CALM supply chain & logistics journal, 186.

[22] Wang, H., Huang, M., Ip, W. H., & Wang, X. (2021). Network design for maximizing service satisfaction of suppliers and customers under limited budget for industry innovator fourth-party logistics. Computers & industrial engineering, 158, 107404. https://doi.org/10.1016/j.cie.2021.107404

[23] Yin, M., Huang, M., Wang, X., & Lee, L. H. (2022). Fourth-party logistics network design under uncertainty environment. Computers & industrial engineering, 167, 108002. https://doi.org/10.1016/j.cie.2022.108002

[24] Aissaoui, N., Haouari, M., & Hassini, E. (2007). Supplier selection and order lot sizing modeling: A review. Computers & operations research, 34(12), 3516–3540. https://doi.org/10.1016/j.cor.2006.01.016

[25] Said, H., & El-Rayes, K. (2011). Optimizing material procurement and storage on construction sites. Journal of construction engineering and management, 137(6), 421–431. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000307

[26] Plebankiewicz, E., & Kubek, D. (2016). Multicriteria selection of the building material supplier using AHP and fuzzy AHP. Journal of construction engineering and management, 142(1), 4015057. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001033

[27] Liu, Q., Xu, J., & Qin, F. (2017). Optimization for the integrated operations in an uncertain construction supply chain. IEEE transactions on engineering management, 64(3), 400–414. https://doi.org/10.1109/TEM.2017.2686489

[28] Choudhari, S., & Tindwani, A. (2017). Logistics optimisation in road construction project. Construction innovation, 17(2), 158–179. https://doi.org/10.1108/CI-03-2016-0014

[29] Jaśkowski, P., Sobotka, A., & Czarnigowska, A. (2018). Decision model for planning material supply channels in construction. Automation in construction, 90, 235–242. https://doi.org/10.1016/j.autcon.2018.02.026

[30] Deng, Y., Gan, V. J. L., Das, M., Cheng, J. C. P., & Anumba, C. (2019). Integrating 4D BIM and GIS for construction supply chain management. Journal of construction engineering and management, 145(4), 4019016. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001633

[31] Nolz, P. C. (2021). Optimizing construction schedules and material deliveries in city logistics: A case study from the building industry. Flexible services and manufacturing journal, 33(3), 846–878. https://doi.org/10.1007/s10696-020-09391-7

[32] Fredriksson, A., Janné, M., & Rudberg, M. (2021). Characterizing third-party logistics setups in the context of construction. International journal of physical distribution & logistics management, 51(4), 325–349. https://doi.org/10.1108/IJPDLM-03-2019-0078

[33] Le, P. L., Jarroudi, I., Dao, T. M., & Chaabane, A. (2021). Integrated construction supply chain: an optimal decision-making model with third-party logistics partnership. Construction management and economics, 39(2), 133–155. https://doi.org/10.1080/01446193.2020.1831037

[34] RezaHoseini, A., Noori, S., & Ghannadpour, S. F. (2021). Integrated scheduling of suppliers and multi-project activities for green construction supply chains under uncertainty. Automation in construction, 122, 103485. https://doi.org/10.1016/j.autcon.2020.103485

[35] Son, P. V. H., Duy, N. H. C., & Dat, P. T. (2021). Optimization of construction material cost through logistics planning model of dragonfly algorithm—particle swarm optimization. KSCE journal of civil engineering, 25(7), 2350–2359. https://doi.org/10.1007/s12205-021-1427-5

[36] Ekeskär, A., & Rudberg, M. (2022). Third-party logistics in construction: perspectives from suppliers and transport service providers. Production planning & control, 33(9–10), 831–846. https://doi.org/10.1080/09537287.2020.1837932

[37] Ekeskär, A., Havenvid, M. I., Karrbom Gustavsson, T., & Eriksson, P. E. (2022). Construction logistics in a multi-project context: Coopetition among main contractors and the role of third-party logistics providers. Construction management and economics, 40(1), 25–40. https://doi.org/10.1080/01446193.2021.2012815

[38] Chen, Z., & Hammad, A. W. A. (2023). Mathematical modelling and simulation in construction supply chain management. Automation in construction, 156, 105147. https://doi.org/10.1016/j.autcon.2023.105147

[39] Darabad, S. D., Izadbakhsh, M., Ghannadpour, S. F., Nouri, S., & Mahdavi-Mazdeh, M. (2024). A new bi-objective green construction model for multi project supply chain management under uncertainty. International journal of industrial engineering, 35(1), 1–17. https://doi.org/10.22068/ijiepr.35.1.1813

[40] Aliahmadi, M., Yaghoubi, S., & Sadeghi, M. (2024). Inventory-scheduling problem in sustainable project supply chain under uncertainty. Environment systems and decisions, 44(4), 836–852. https://doi.org/10.1007/s10669-024-09975-w

[41] Ghamari, H., Abbasianjahromi, H., & Mirhosseini, S. M. (2024). Providing a framework to optimize the sustainable construction material supply chain with the possibility of horizontal transfers. Sustainable futures, 8, 100328. https://doi.org/10.1016/j.sftr.2024.100328

Article Metrics

Published 2025-12-15
Issue Vol. 2 No. 4 (2025): Supply Chain and Operations Decision Making
Section Articles
Document Type Research Article
Views 497
Downloads 153

License

Copyright (c) 2025 Supply Chain and Operations Decision Making

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

View License Details

How to Cite

Karimi, B. ., & Mohammadpour Omran, M. . (2025). Fourth-Party Logistics in Off-Site Construction: A Synergy-Based Service Strategy. Supply Chain and Operations Decision Making, 2(4), 229-242. https://doi.org/10.48313/scodm.v2i4.43

Download Citation

Similar Articles

Mahdi Razaghi, Mahtab Esmaeili, Seyed Esmaeil Najafi, When does the Uncertainty Budget Change the Design? A Decision-Response Diagnostic for Robust Closed-Loop Supply Chain Network Design , Supply Chain and Operations Decision Making: Vol. 3 No. 3 (2026): Supply Chain and Operations Decision Making
Mehdi Kianiha, Masoud Rahiminezhad Golankeshi, Roghieh Bazoubandi, Evaluating and Ranking Supply Chain Distributors Using FAHP and FANP Methods , Supply Chain and Operations Decision Making: Vol. 2 No. 4 (2025): Supply Chain and Operations Decision Making
Behnam Karimi, Mohammad Mohammadpour Omran, A Blockchain-Based Optimization Model for Smart 4PL Network Design in Off-Site Construction , Supply Chain and Operations Decision Making: Vol. 3 No. 1 (2026): Supply Chain and Operations Decision Making
Sayedeh Saeideh Azarmina, Mohammad Saber Fallahnejad, Hassan Khademi Zare, A Combined Knowledge-Driven and Data-Driven Approach to Selecting Resilient Suppliers Based on Heterogeneous Information (Case Study: Steel Industry) , Supply Chain and Operations Decision Making: Vol. 2 No. 4 (2025): Supply Chain and Operations Decision Making
Mahnam Najafi, Hiva Faroughi, Opportunistic Maintenance Modeling in a Closed-Loop Supply Chain: The Impact of Spare Parts Material, Technician Skill, and Environmental Conditions , Supply Chain and Operations Decision Making: Vol. 2 No. 4 (2025): Supply Chain and Operations Decision Making
Amirhossein Amou Jafari, Kiana Salehi, Designing Resilient Biomass Energy Supply Networks under Environmental Disruptions and Market Uncertainty: An Integrated Data-Driven Clustering, MCDM, and Bi-Level Optimization Framework , Supply Chain and Operations Decision Making: Vol. 3 No. 2 (2026): Supply Chain and Operations Decision Making
Majid Bagheri Ghadikolaei, Abdollah Aghaei, Optimizing Last-Mile Delivery with Crowdshipping and Considering Carriers' Acceptance Probability , Supply Chain and Operations Decision Making: Vol. 3 No. 4 (2026): Supply Chain and Operations Decision Making
Mohammad Bagherian, Behnam Bagherian, Nasim Nahavandi, Intelligent Inventory Management in Behpakhsh Company's Supply Chain Using InvAgent: A Large Language Model Based on a Multi-Agent System , Supply Chain and Operations Decision Making: Vol. 2 No. 3 (2025): Supply Chain and Operations Decision Making
Aditya Tulsyan, AI-IoT-Based Optimization Techniques for Smart City Waste Management , Supply Chain and Operations Decision Making: Vol. 2 No. 2 (2025): Supply Chain and Operations Decision Making
Seyed Mohammad Hassan Hosseini, Simultaneous Optimization of Production, Maintenance, and Quality in a Multi-Product System under Demand Scenarios , Supply Chain and Operations Decision Making: Vol. 3 No. 4 (2026): Supply Chain and Operations Decision Making

1-10 of 52 Next

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

Behnam Karimi, Mohammad Mohammadpour Omran, A Blockchain-Based Optimization Model for Smart 4PL Network Design in Off-Site Construction , Supply Chain and Operations Decision Making: Vol. 3 No. 1 (2026): Supply Chain and Operations Decision Making