A Brief Note On Systems And Logistics Support Management

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Third-Party Logistics
Gregory Long
MG 5061: Systems and Logistics Support Management
Dr. Janice Spangenberg
February 28, 2016

Abstract Blanchard (2006) defined third party logistics as, “A single entity that coordinates all the logistics requirements for a given company/agency.” 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
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According to Write Pass (2012),
A Third Party Logistics providers (3PL), can be identified as first, second, and third service providers. 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.
Third Party Logistics Information Systems
There are at least nine different systems/software that third party logistics providers use to accomplish their job. Warehouse management, cloud management services, billing management, customer visibility, document management, supply chain intelligence, fleet and transportation management, shipping, and trading partner integration. One of the developer of this software is Accellos.
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.
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