The Impact of Globalisation on Logistic Service Providers

Jennifer A. Chatman1 Haas School of Business University of California Berkeley, CA 94720-1900 chatman@haas.berkeley.edu And Sandra E. Cha Harvard Business School Soldiers Field, Sherman Hall 102 Harvard

This paper was conducted as a Discussion Board Post assigned by Professor J. Reinke of: Liberty University, Graduate School of Business, Lynchburg, Virginia 24515.

* Stern School of Business, New York University, New York, NY 10012, (212) 9980864, fax (212) 995-4218, http://www.stern.nyu.edu/networks/, neconomi@stern.nyu.edu Copyright ©, N. Economides

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Another article, co-authored by Heather C. Vough (University of Cincinnati’s Lindner College of Business), Christine D. Bataille (Ithaca College School of

 A recent 3-year Business Administration Advance diploma graduate, at North Humber College, Toronto Canada. 09/14 –

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Correspondence concerning this analysis and answers of questions should be addressed to Leslie A. Irizarry, Department of Business, Monroe College- King Graduate School, Ustin Hall, 2501 Jerome Avenue, The Bronx, NY 10468.

Westminster Company is one of the largest manufacturers of consumer health products, based in US. Their distinctive name and company logo are recognized throughout the world. Westminster was originally founded as a family-owned pharmaceutical supply business in 1923, the company has expanded, by virtue of aggressive new product development, into a global provider of health care consumer products. It consumes three wholly owned subsidiaries, manufacturing grocery product, drugs, and mass merchandise. Intense rivalry in the market, and distresses of having an effective supply chain, made the company evaluate its supply chain and logistics. The primary focus of its research was the key clients of the three companies. To understand logistics the company must first know what logistics is and how it works. Logistics is defined as a business planning framework for the management of material, service, information and capital flows (Logistics World , 2014). Logistics is an important function of the business and without a proper logistics system, all the manufacturing, marketing and other activities would fail, overall resulting with the company failing to reach its full potential. After thoroughly analyzing the case study of, Westminster Company, to improve their current logistic strategy, they would need to implement the following strategies: developing and analyzing a new system to focus on strategic effort to ship their products in a timelier, efficient and in a more accurate

Correspondence concerning this article should be address to Silp Dhanasin, Master of Business Administration, Strayer University, 500 Redland Ct#100, Owing Mills, MD 21117

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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

Department of Decision and Information Technologies, College of Commerce and Finance, Villanova University, Villanova, PA 19085, USA Received 7 February 2002; accepted 26 September 2003

It is known to us, “in each industry, the customer is god, is operator's food and clothing parents.” This tells us that customers are important to organizations. With the current intense competition in logistics nowadays, most companies can provide high quality goods, even are willing to cut down prices if reasonable. However, how can suppliers gain a competitive advantage when high quality is expected and price must be maintained at a level to generate a reasonable return? In our views, it is no doubt that how various supplier service activities are valued by customers, more specifically, that is, the ability of logistics

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.