A Brief Note On Systems And Logistics Support Management

1308 Words Feb 28th, 2016 6 Pages
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 management, transportation, warehousing, and other value added activities for customer services. Third party logistics ultimate goal is to provide a competitive advantage to the organization for which they are serving. According to Cardinal Logistics (2012), “Third-Party Logistics is an effective way to reduce operational costs, and allow a company to focus on their core competencies.

Overview of Third Party Logistics Between the year of 1970 and 1980 it was recognizes as the first generation of the third party logistics for providing services for shipping and transportation. By the 1980’s through the 1990’s were non-asset and asset based organizations by increasing the services level of contribution and by the…
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