Cendian - A 4PL Service Platform for Chemical Logistics Outsourcing

The trend is clear: E-business is giving way to services and business process outsourcing (BPO). That is, companies are focusing more on delivering services to their constituents using technology and less on technology itself. In turn, IT-enabled services are fueling BPO. New Web-enabled service platforms are surfacing to support the outsourcing trend. Cendian Corporation, a leading provider of chemical and plastics logistics, offers a good example of a Web-enabled service platform. In this best-practice case study, we will:

• Illustrate the growing use and importance of BPO business models in transportation and logistics management. BPO is being practiced in the form of third-party logistics (3PL) and fourth-party logistics (4PL) models. Examples of 3PLs include Menlo Worldwide, Ryder, and Schneider National. Examples of 4PLs include Nistevo and UPS Logistics (now UPS Supply Chain Solutions).
• Present the nuances of the 4PL business model, which leading corporations are actively pursuing to create value and make money. We borrow from the chemical industry the best-practice example of Cendian. The chemical industry was a logical choice since it is advanced in the implementation of e-services and enterprise applications. The discussion of Cendian's 4PL business model is based on the business model analysis framework developed by ebs.
• Highlight the functionality and value proposition of Cendian's service platform, which manages complex chemical logistics processes. Cendian provides Web-based applications that facilitate truckload and less-than-truckload distribution networks. The company has more than $1 billion of chemical logistics services under contract. We take a closer look at G-Log, a key technology that powers Cendian's platform.
• Give readers the chance to find out what is behind a successful corporate venture model - Cendian is the BPO service venture of Eastman Chemical. Venture models increasingly target new services delivered through service platforms for non-traditional growth opportunities and new sources of revenue, rather than cost-cutting. This is a novel BPO strategy that is gaining popularity.

How does a large company create and position a successful BPO venture? Read on to learn more…

Read the full case here.