Importance if Third Party Logistics Essay

They even desired to open a warehouse in any city in Australia. Thus, there are a number of Australian clients who embraced the idea. They even asked the company to take charge of their goods from Australia to the different states in the U.S. However, the CEO cannot afford to establish one without making preliminary plans. Furthermore, they looked forward to meticulously design a business strategy or plan to ascertain successful and efficient operations. Described below are the warehouse operations that present the company’s supply chain.

Over the past few decades, logistics activities have gained increasing strategic importance for almost every company all over the world. Fixed costs of production have increased, consumer demands have become more complex and are harder to predict, both in time and place. Technology is rapidly changing around the world every new day there is a new and advance technology and product life cycles have shortened while product range has increased. Now more than ever, companies are faced with the challenge of producing an increasingly large variety of products in a responsive manner while keeping materials and inventory to a minimum to fulfill the customer demand

LIS is defined as a management information system providing management with relevant and timely information related to logistics functions and logistics activities, Major improvements of information technology for international logistics there are 7 potential benefits of adopting LIS

It is widely known that logistics is the life blood of anything major. The logistics and transportation industry in the United

The cost, efficiency and capacity of the national logistics system was also identified as an area of concern. From a market perspective barriers to entry and limits to competition were pin pointed.

A Third-Party Logistics Provider (3PL or sometimes TPL) is a company that provides an outsourced (or "Third Party") logistics services for part, or all of their supply chain management functions.to its customers. Third-Party Logistics Providers (3PL) specialize in providing an integrated operation including warehousing, storage, and transportation and distribution services. The advantage of the 3PL service provider is that their service can be scaled and customised to their customers' needs based on market conditions, growth of the business, extended to other cities and countries. The services they offer go beyond logistics and include value-added services related to the production or procurement of goods, i.e., services that integrate parts of the supply chain. When

The organisation is committing to improving the logistics system to make delivery more efficient; even though the precise figures are not known yet, the intention is there nevertheless. While the logistics in the organisation plays a very important role for product movement to different manufacturing sectors (within the organisation) and to customers

Third-Party Logistics (3PL) is a logistics program that has been outsourced to a company that specializes in logistics management. These 3PL organizations hire experienced logisticians, supply chain managers, statisticians, and other specialized professionals to handle some or all aspects of a business’ logistics program. Organizations are opting to outsource their logistics management for a variety of reasons; “Some companies choose to let third-party providers handle only transportation or warehousing; others opt to outsource everything from packaging and assembly to inbound transportation and freight consolidation” (Feeley & Driscoll Certified Public Accountants). The following paper addresses some of the reasons why companies around the world are outsourcing their logistics management instead of keeping it in-house.

According to various studies, Berglund et al. (1999) explain that third party logistics has several definitions that are an activities consisting of transportation and management, and warehousing on behalf of the shipper are carried out. Wilding and Juriado (2004) define that a company who solely operates for the provision of logistics-related single or multiple services on a contractual basis, is called Third Party Logistics Company. Especially, the true third party logistics companies provide a solution to the problem in the supply chain by incorporating multiple logistics services that are managed solely or together (Schary and Larsen, 1995). Coltman, Gattorna and Whiting (2010) suggest that third party logistics companies must create a large range of services to meet their distinct needs. A definition by Lieb et al. (1993) explain that 3PL providers can assist the whole processes of supply chain or just only selected activities depending on a company’s preference. It is also conclude the definition of outsourced logistics services that the employ of external firms to provide logistics services for the whole or selected logistics activities within the process that have traditionally been performed within an organization is the outsourced logistics. The roles performed by the 3PL providers can be making especially to customers' requirements (The Client Company) derived from market demands and conditions.

International Journal of Global Logistics & Supply Chain Management. Vol. 1, No. 2, 1 November 2006, 90 – 97.

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.

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.

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.

From being a military tool, it has been slowly imbibed by the business empires to effectively manage their production and distribution requirements. A contemporary definition of logistics explains it as " the process of planning, implementing and controlling efficient and cost-effective flow of materials and information from point of origin to point of consumption for the purpose of conforming to customer ' s requirements"

Introduction to Logistics and its interface with production and Marketing; Measures of Logistics; Physical distribution and logistics.