Once the shipments reach an Australian port they are transported, to one of APL’s five distribution centres, by truck due to low accessibility of rail at Australian ports placing a reliance on road transport (The Allen Consulting Group 2010, p.5). The shipments are deconsolidated and packed into LTL or FTL for delivery direct to outlets; or multiple outlets along a route using trucks (APL Logistics 2016b). Additionally, the introduction of omni-channel marketing by Billabong (Barrie 2015) has necessitated frequent and small parcel delivery in a timely fashion. This function is handled by Star Track Express, who employ a combination of air freight and light truck as modal choices (Star Track Express 2012). Air freight is ideal for the movement of small parcels and time sensitive items (Coyle et.al 2009, p.406) that online purchases demand. Light truck is ideal for pickup and delivery to multiple end customer locations (Coyle et.al 2009, p.403), at the cost required.
The freight services provided by APL Logistics included chain visibility for not only Billabong, but their customers and suppliers as well. This is an example of a flexible tripartite enterprise collaboration, where each party can plan, manage and track shipments (Naim et.al 2006, p.306). Additionally, there exists the capability to alter the intermodal choices, to benefit the supply chain. Intermodal capabilities are facilitated by a full service 3PL provider for optimal results allowing greater access and
The strategy was to offer low price in the market which led to setting the lower prices. Niche marketing was used in setting the prices to be offered for the different market segments. Products with market target specifications are availed. The low-cost strategy was applied to set up the budget of the firm. It would use the least possible production budget to cut the price of products. The combination of strategies assists in maintaining a key position in a market. Compete effectively with opponents.
Because the suppliers will normally either use big lorry’s or through aeroplanes (if they are shipping from abroad) this
Heathcote, P. M., Heathcote, P. M., & Ngowi, B. (2002). Successful ICT projects in Access. Ipswich: Payne-Gallway.
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
3PLs are focused in the fields of logistics and transport management with high economic efficiency. The costs of associated logistics services can be managed efficiently.
Logistics is one of the last processes of the company who can improve corporate efficiency by the outsourcing. It also reduces the distribution cost where manufacturing firm has many products and they do have also its outlets globally. 3PL has grabbed the opportunity for the shipper in all expects, they are low cost then shipper, innovative machine, skilled labor and fast moving ability. 3PL is improving its technology and also give technical knowhow to its technicians for establishing better alliances. The research directly targets the main stream of the
In recent years, Third Party Logistics (3PL) service providers play a very important role in a supply chain of an organization. A brief literature review is given in this section of the paper. Tate (1996) identified seven factors (compatibility, deep understanding of a partner's business needs, open communications, commitment, fairness, flexibility, and trust) that improved long- term relationship between 3PL and their customers. Logan (2000) used agency theory to help in bonding 3PL/customers relationships. It is postulated that, cost reduction and services improvement criteria are most expected by clients to avoid conflicts with their 3PL. Fawcett and Smith (1995) identified five criteria’s to evaluate the 3PL performance,
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.
Outsourcing Logistics 2005: Best Practice for Managing 3PL Relationships April 25-26 2005 - Hyatt Regency McCormick Place, Chicago, IL www.eyefortransport.com/outsourcelog
I will discuss each of the above criteria which should be used by the compact disc manufacturer to evaluate for an appropriate distribution member
Question: Should companies involve their marketing channels in the design of the promotional programs? What are the advantages and disadvantages of doing so?
There are many benefits of understanding the international context of business trade and logistics. To achieve competitive advantage, even within small firms, it is necessary to gain expertise in the international logistics activities which are much more complex than what domestic trade involves. The world’s economy is increasingly global, and the logistics sector designates a significant fraction of that economic activity, the estimated total stands at $7. 4 trillion dollars (David, 2013, p. 53). Technology and electronic communication have facilitated customer demand fulfillment and the movement of products. For someone in business it is critical to understand the continued growth in international trade, drivers of international trade, and the possible barriers in the international infrastructure.
The remaining $26 billion represented those activities performed by the freight logistics industry, comprising those firms providing freight logistics services to private and government customers. Services provided by freight transport logistics operators accounted for $23 billion while services provided by non-transport logistics operators totalled approximately $3 billion (BTE Report, 2002). In Australia there are many 3PL providers, but out of them Australia Post, Toll Holdings, P&O Australia Ltd are the biggest ones. (Appendix 1)
Third party logistics industry (3PL) also referred to as logistic outsourcing has become a thriving sector within the supply chain and logistics sector. As the world of logistics and supply chain management has grown so has the need for third party logistics providers to deliver comprehensive services to companies that are constantly looking for ways to stay competitive and innovative in order to improve processes, increase profits, and lower cost throughout their organization. Third party logistics providers have come to play a major role in helping companies meet those goals. As the demand for third party logistics providers increases it becomes even more important that they are able to both stay competitive among other third party logistic providers and exceed at meeting the needs of companies. The supply chain world is ever changing especially when it comes to technology which means that third party logistics providers have to be able to deliver the best and latest in technology to companies as well. As there is never a one fit all solution in the supply chain industry third party logistics providers have to be able to meet the organizational demand of their customers supply chain structure however complex and challenging it may be.
The objective of this paper is to present some benefits and issues in 3PL in general and has been organized as follows; in the following section, a brief background to why third-party logistics services have been adopted including a review of the relevant literature. Subsequently, the benefits that have been associated with use of 3PLs are presented followed by a presentation of the critical issues and requirements necessary in establishing beneficial 3PL relationships. Both sections will be related to the Malawi experience of a 3PL