A Brief Note On Systems And Logistics Support Management

1070 Words5 Pages
Third-Party Logistics
Gregory Long
Florida Institute of Technology
MG 5061: Systems and Logistics Support Management
Dr. Janice Spangenberg
February 28, 2016

Abstract Today’s world business environment has become so competitive that companies in order to be successful in the market must deal with different resources for satisfying their customer need. In the past decade or so the competitive global market has made a big influence in the growing for external business. Third party logistics providers are more and more employing external companies for inventory management, transportation, warehousing, and other value added activities for customer services. Third party logistics
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First party provider is the main company that provides the service or product, the second is to whom receives the service it is the consumer and the third is the company which hired the main company for provide the service between customers and company.
Types of Third-Party Logistics (3PL) Providers
• Transportation Based:
 Services extend beyond transportation to offer a comprehensive set of logistics offerings.
 Leveraged 3PLs use assets of other firms.
 Non-leveraged 3PLs use assets belonging solely to the parent firm.
 Examples: UPS Logistics, Ryder, FedEx Logistics, Schneider Logistics
• Warehouse/ Distribution Based:
 Many have former warehouse and/or distribution experience.
 Examples: USCO, DSC Logistics, Caterpillar Logistics Exel, IBM

• Forwarder Based:
 Very independent middlemen with forwarder roles.
 Non-asset owners that provide a wide range of logistics services.
 Examples: Hub Group, AEI, Fritz, Circle, C. H. Robinson, Kuehne & Nagle,
• Financial Based:
 Provide freight payment and auditing, cost accounting and control, and tools for monitoring, booking, tracking, tracing, and managing inventory.
 Examples: CTC, Cass Information Systems, FleetBoston, GE Information Services
• Information Based:
 Significant growth and development in this category of business-to-business, Internet-based, logistics services, and electronic
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