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As global supply chains become increasingly complex, Gartner’s latest Magic Quadrant for Fourth-Party Logistics (4PL) highlights why orchestration is becoming a strategic necessity rather than an optional upgrade. Industry experts at SEKO Logistics say the report reflects challenges they see businesses grappling with daily: fragmentation without orchestration no longer scales.
Global supply chains remain under sustained pressure from geopolitical instability, shifting trade policies, climate disruption, cyber risk, and ongoing volatility in transport networks. In response, organisations are diversifying production locations and supplier bases, boosting resilience but also significantly increasing operational complexity.
Gartner’s newly released Magic Quadrant for Fourth-Party Logistics highlights this shift, noting that companies are increasingly turning to 4PL providers to act as neutral orchestrators integrating multiple carriers, warehouses, and technology platforms into a single, cohesive operating model.
“The Magic Quadrant highlights a reality many businesses are already facing,” said Paul Lockwood, UK & Ireland Group Managing Director at SEKO Logistics. “Supply chains are no longer linear. Without a central orchestration layer, complexity becomes a liability rather than an advantage. That is why orchestration models such as 4PL are gaining momentum.”
Fragmentation Is the New Normal
Gartner analysts point out that as organisations manufacture and source products across multiple geographies, freight flows become more complex but also more adaptable.
“Companies are choosing to make products in different locations, which results in a different flow of freight from various countries,” said David Gonzalez, VP Analyst at Gartner. “That increases complexity but also the flexibility that companies want to retain… which is why we’ve seen an increase in demand for 4PLs.”
SEKO experts echo this assessment, noting that many businesses now manage dozens of logistics partners and disconnected systems, often without end-to-end visibility.
“Fragmented supply chains without a control layer are like traffic networks without signals everything moves, but nothing flows,” said Andy Berkshire, Group Commercial Director UK & Ireland. “4PL providers bring the coordination that allows complexity to work rather than break.”
Market Momentum Supports Gartner’s Findings
The broader market data aligns with Gartner’s conclusions:
- The global 4PL market is projected to grow from USD 59.6 billion in 2024 to USD 133.3 billion by 2034, an 8.5% CAGR (InsightAce Analytic).
- AI adoption in supply chains has risen from 35% to 45%, driving improvements in forecasting, inventory optimisation, and risk management (Tive).
- Automated PO-to-SO workflows can reduce administrative effort by up to 80% (Sourceday).
“These figures show that orchestration is no longer just about logistics it’s about data, automation, and strategic oversight,” added Lockwood. “4PL providers add value by connecting technology, partners, and processes into a resilient, data-driven network.”
4PL in Practice: From Theory to Execution
Across the industry, organisations are applying orchestration principles to improve visibility, resilience, and operational efficiency areas highlighted in Gartner’s research.
SEKO has supported customers pursuing these objectives through coordinated supply chain programmes:
- citizenM partnered with SEKO to orchestrate its global hotel supply chain, improving visibility across suppliers and regions.
- Virgin Atlantic worked with SEKO to streamline complex aviation logistics, reducing inefficiencies in a highly regulated environment.
“The impact for our customers has been significant,” said Berkshire. “We’ve seen global inventory reduced by up to 32%, operating costs down 25%, and inventory turning 40% faster. Strategic oversight turns disruption into competitive advantage.”
A Strategic, Not Universal, Solution
Gartner’s research also makes clear that 4PL is not a one-size-fits-all approach. Orchestration models are best suited to organisations operating across multiple regions and partners, or those facing sustained disruption. Challenges can include system integration complexity, governance concerns, and vendor dependency.
“The most common question we hear is whether orchestration should be insourced or outsourced,” said Lockwood. “Unless a company already has mature orchestration capabilities, the shift is steep. A phased or hybrid approach with clear milestones is usually the most effective path.”
About the Gartner Magic Quadrant
Gartner’s Magic Quadrant for Fourth-Party Logistics evaluates providers based on their ability to execute and completeness of vision, reflecting the growing strategic importance of orchestration in modern supply chains.
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