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92% of Supply Chains Face Tech ROI Gaps as New Redwood Research Points to Open 4PL Orchestration to Fix Network Fragmentation

News originally published by

GlobeNewswire

New Redwood research outlines six core properties of an Open 4PL, offering a maturity model, 12 RFP questions, and an industry lookahead

CHICAGO, Nov. 11, 2026 (GLOBE NEWSWIRE) -- Redwood Logistics (Redwood), a leading open fourth-party logistics (4PL) provider, today released “The State of 4PL 2027: Why the Future of Logistics Orchestration Is Open”. The report explores how the 4PL model evolved into an enterprise category, details why legacy frameworks fall short, and establishes what shippers should demand from an orchestration partner.

The State of 4PL 2027 concludes that North American networks are too volatile and tech-intensive to run through disconnected point solutions. AI increases the financial penalty of that fragmentation because systems capable of taking autonomous action require clean data and clearly defined decision rights. To solve this, Redwood makes the case for the Open 4PL, an AI-enabled orchestration layer built on ecosystem neutrality, execution access, continuous operation, outcome-based accountability, and commercial flexibility.

"Every 4PL relationship embeds a fundamental architectural choice: either the provider adapts to the shipper’s ecosystem, or the shipper is forced to adapt to the provider’s closed stack," said Mike Reed, Chief Product Officer, Redwood. "Our report shows where 4PL is heading, moving away from legacy, provider-controlled stacks toward open networks that unite physical execution and technology. Shippers are operating in highly volatile environments, and the market is shifting toward orchestration layers that manage whole ecosystems rather than single modes or static platforms."

To help supply chain executives navigate these hurdles, the report introduces a five-level orchestration maturity model tracking a shipper's progression from fragmented logistics to an adaptive supply chain. Most North American shippers currently operate at Level 2 or Level 3, facing their steepest challenge in moving to Level 4, where passive visibility converts into real-time execution authority.

"Deploying advanced technology or agentic AI into a fragmented network simply automates the chaos," said Eric Rempel, Chief Innovation Officer, Redwood. "Our research found that only 13% of shippers deploying AI see quantifiable results, because unintegrated data and fragmented tools act as instant innovation blockers. An Open 4PL fixes that foundation first. It provides a neutral technology and data foundation where new tools, platforms, and AI agents can be plugged in and orchestrated without locking the shipper into a single vendor roadmap."

What The State of 4PL 2027 report provides:

  • Architecture & Capabilities: Seven core capabilities of an Open 4PL and a five-layer technology architecture.
  • RFP Framework: Twelve questions designed for direct use in supplier evaluations and governance reviews.
  • Risk Management: Nine warning signs that signal a need to pause or slow provider selection.
  • Operating Models: A side-by-side comparison of five models, ranging from internal builds to hybrid orchestration.
  • Industry Outlook: Ten market predictions for North American logistics orchestration through 2031.

"The most useful questions a shipper can ask an orchestration partner are the ones a provider cannot answer with a slide," said Erin Breen, Chief Growth Officer, Redwood. "Redwood’s open 4PL model is built to give shippers total flexibility and long-term optionality. Optionality given up in year one is extraordinarily expensive to buy back in year four, which is why our focus is on building an adaptable operating foundation that shippers truly own."

To download The State of 4PL 2027, visit https://landing.redwoodlogistics.com/the-state-of-4pl-2027

About Redwood Logistics
Redwood Logistics® is a leading logistics company and Open 4PL headquartered in Chicago. For more than two decades, Redwood has delivered innovative solutions for moving and managing freight while helping shippers build smarter and more adaptable supply chains.

Redwood is an Open 4PL that unifies logistics execution, supply chain technology, and open-ecosystem integration to run, optimize, and continually improve complex supply chains.
This model brings together deep multimodal execution expertise with advanced integration and orchestration capabilities to provide real-time visibility, reduce operating costs, and support more intelligent end-to-end operations.

This approach is powered by RedwoodConnect™, a digital supply chain integration platform that links partners, technologies, and processes into a coordinated and flexible ecosystem. Through this strategy, Redwood enables customers to shape their own digital supply chain fingerprint and access the tools, insights, and experience required to manage dynamic logistics networks.

Sources
Gartner, Magic Quadrant for Fourth-Party Logistics, Matthew Beckett and David Gonzalez, 1 December 2025 (G00822945).
PwC, 2025 Digital Trends in Operations Survey.

Gartner Disclaimer
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Media Contact
Tyler Thornton
LeadCoverage
tyler@leadcoverage.com


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