The Impact of Globalisation on Logistic Service Providers

3396 Words14 Pages
Biographical Note Dr. Seyed-Mahmoud Aghazadeh

is in the Department of Business Administration, School of Business, State University of New York at Fredonia, Fredonia, NY 14063, USA.

How to Choose an Effective Third Party Logistics Provider by Seyed-Mahmoud Aghazadeh Abstract The purpose of this article was to identify the steps that need to be taken when choosing an effective third party logistics provider. Based on the research completed, it was determined that third party logistics are beneficial to many companies. The use of third party logistics provides a competitive advantage in today’s business world. The optimal solution for a company choosing a third party logistic provider would be a five-step process. Introduction The
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The focus of the present article is on identifying the steps involved in choosing a good TPL provider, and these steps will be mostly related to the retail and service industries. Every industry has its own unique needs and so it is important that the TPL provider is right for the particular company. This research shows that TPL can be very effective if the proper tools are used in implementing one. Background Logistics is the process of strategically managing movement and storage of material or products and related information from any point in the manufacturing process through consumer fulfilment. Many articles and abstracts focus on how TPL are being used more often. TPL has become a more popular technique for managing transportation, warehouse and inventory management. TPL are often seen as providers of the integrated supply chain, which uses many value-added services to work with the customer. The market for TPL services is growing by 18 to 22 per cent a year. TPL originally began as public warehousing during the 1970’s. Managers of warehouses began selling space to businesses in the area that had run out of space or were in need of additional space during the busy seasons. During the 1980’s TPL expanded into selling not only space but also offering throughput to physical distribution managers who wanted to improve customer service with their current customers. By the 1990’s TPL saw the consolidation of both warehousing and transportation organisations to offer

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