Disadvantages Of 3PL

The third party logistics (TPL) and fourth party logistics (FPL) act as a support system for companies to effectively formulate and manage their supply chain process.

Mostly, the company is proud to promote its high-tech communication technology employed to assist its operations. Managers of the company ensure stakeholders that technology always powers every line of service they offer. For instance, a PLD (package level detail) is always created to guide UPS officers in their global delivery operations. Each PLD is built from the information delivered by UPS customers through UPS electronic information system. UPS delivery officers are also guided by UPS package routing technology which is designed to enhance timeliness and

In recent years, logistics has been identified as having the potential to become the next governing element of corporate strategy to create value for customers, generate cost savings, enforce discipline in marketing efforts and extend the flexibility of production and information technology helps to improve the logistics management.

United Parcel Service (UPS), is the world’s largest express package delivery firm that handled more than 4.7 billion packages and documents in 2015. This global transportation and logistics service provider operates in more than 220 countries, and offers an array of supply chain management solutions (UPS Fact Sheet, n.d.). The firm has diversified its products and/or services to include freight forwarding and logistics services via air, ground, rail, and sea. U.S. Domestic Package operations, International Package operations, and Supply Chain and Freight operations are the three operating segments UPS. Through technology advancements UPS delivers online package tracking, e-commerce services, and specialized

UPS is the world’s largest package delivery company, in terms of revenue and volume, and a global leader in supply chain solutions and less-than-truckload transportation services. In 2009, the company delivered an average of 15.1 million packages and documents per day throughout the US and to more than 200 countries and territories. The primary business of the company is the time-definite delivery of packages and documents. Besides that, the company also has extended their capabilities to encompass a broader spectrum of service, which known as supply chain service, such as freight forwarding, customs brokerage, fulfillment, returns, financial transaction, repairs and less-than-truckload transportation services (UPS, 2010a).

The Distribution category of a 3PL would be more focused on the public or contract warehousing. This is all about filling orders and

Similarly, Verizon company uses 3PL provider, New Breed to develop an automated warehouse fulfillment solution that provides same-day processing of its direcct-to consumer orders (Patridge, 2008). The 3PL operates of Verizon’s three distribution centers, offering real-time visibility to orders and inventory by tracking every serialized unit. Moreover, New Breed ships 20,500 consumer orders daily for Verizon with 99.9 percent accuracy while 100 percent of orders that arrive before 5 p.m are shipped the same day (Patridge, 2008). A customer even states, a call made to Verizon on Monday afternoon regarding a replacement of battery was quickly sent by tuesday morning (Patridge, 2008). This clearly indicates the fast and effectiveness of 3PLs into a company’s operations.

The third party logistic is use by the outside company to perform all or part of the firm’s material and distribution of the product. 3PL are the independent providers,they are providing a single or multiple logistics services to a purchasing company. Infact the 3PL does not hold the ownership of the product distribution and they are responsible to perform the activities of the logistics for the purchasing firms. They also have a long-term relationship and commitment between the two parties. A company may outsource its various logistics fuctions to one or more third party logistics alinged with the management strategy to receive benefits of increasing flexibility , reducing costs and for improving

Today’s world many options are available for transporting products from one point to another. A firm may select any one or more of five basic transportation modes—motor, rail, air, water, or pipeline.In addition, certain modal combinations are available, including rail-motor, motor-water, motor-air, and rail-water. Such intermodal combinations offer specialized services and sometimes lower costs not generally available from a single transport mode. Also other transportation options exist, including indirect, special carriers, or non-operating third parties, which offers a variety of services to shippers. These transporters include freight forwarders, shipper cooperatives, parcel post, UPS, FedEx, DHL, EGL, Star Track express, Toll priority and other specialty carriers.

Third party logistics is a provider that gives companies the ability to outsource their logistics services. Logistics services that may include anything throughout an organization that involves management of the way resources are moved to areas where they are required or needed. Some would say the term, third party logistics, come from the military. In the business world, third party logistics con somewhat have a broader meaning. Meaning that it can be associated with service contracts that involve shipping or storing of items. Third party logistics provide services that may be a single service such as warehouse storage or transportation related, but it can also provide a system-wide bundle of services that have the capability of managing a company’s entire supply chain. Photo provided by Robinson (2013).

Only 45% of the participating freight forwarders in the study by Fenex and Syntens (2010) consider the improvement and adaptation of a PCS as a top 3 priority for the years 2010 and 2011. While a considerable amount of 18% is not planning to improve or adapt their digital information exchange with other actors for the coming years, due to the fact they mainly consider a PCS at a similar level as a normal software provider (Leonard-Barton 1988 and Wigand et al 2005).

Chemlogix a Third Party Logistics company that works with chemical manufactures instigates the effectiveness of 3PL to

Following the paradigm shift on the role of logistics management in the recent decades, there has been a wide recognition of this as a very important aspect a business strategy in general. However due to the numerous factors promoting complexity of logistics management companies have adopted the idea of outsourcing their logistic activities to Third Party Logistics (3PL) providers. Hence, 3PLs have taken a critical role towards supply chains of heir customers.

Working for International Logistics Inc. and being such an integral part of the growth of this company has been a real honor. Looking towards the future of International Logistics Inc. it is important to focus the company’s attention towards new international ventures in order to keep up with globalization. Working as the international logistics manager it is important to look at the pros and cons of possible export countries that would be most beneficial to the United States and International Logistics Inc. The need for thorough research of the possible country and market is

Since the globalization developing quickly, customers become prefer manufactures and suppliers who provide faster logistics and better services, which cause big issue for suppliers to increase their ability to meet the customers’ expectations. However, they need to enhance their core competence at the same time, in order to focus on one aspect, they turn to outsourcing. According to Blanchard (2010), those well-known brand makers, product-centric companies, and companies that used do rely on their own supply chains are now tending to rely on 3PLs (Third Party Logistics) to do the transportation and similar logistics tasks.