Introduction:
What is logistics? It is management process of the movement of resources it can be either raw material or finish goods between source of consumption and the end user i.e. customer, organization to meet requirements. There are various definitions in the literature or in the business world; the most suitable definition is the overall relationship between supply, material management and the distribution (Rushton A. ). This logistics concerned with physical as well as information flows, not only that it use in the storage form the raw material to final distribution of the finish good. In the logistics process physical items frequently involves the combination of material handling and the material flow, production, information
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Most of the global companies are outsourcing the logistics services because of the numerous factors (Mitra, S. 2006). The most important factor is globalization, firms all over the world are rapidly increases their sourcing, distributing as well manufacturing the goods or service with a global scale by creating very difficult supply chains network. Yet, all these activities can outsource with the help of the capable 3PL service providers who having ability to serve in the global operations and they also offer detailed supply chain analysis with their expertise IT abilities and with the modern mode of transportation, material handling tools and warehousing facilities (Hwang, H. 2005). 3PL services are used to balance the various logistics processes with the businesses that do not have any capability and also to increase the geographical reach (Mothilal, S et al). When the organization or firm expands their business to overseas market, they are not aware of the various customs duties, tax system of the host country, rules and regulations, import and export policies of the government, political nature for the growth of business and culture of the overseas country. A 3PL provider, who had thorough knowledge about the countries operation system, will able to carry the operation at the domestic level than the logistic service provider. 3PL may not be the core activity of an organization. 3PL providers offering a number of services to their
Logistics: that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customers’ requirements (CLM, 1999).
Logistics is planning and executing of the movement and support of forces. When examining logistics I have to draw from my most
2. (p. 463) Logistics is the activity that controls the transmission of physical materials through the value chain, from procurement through production and into distribution.
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
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
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).
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
Logistics is the administration which synchronizes such giving activities as acquirement, processing, bargains, and dissemination with requests. It plans to upgrade corporate aggressiveness and increment corporate esteem by acknowledging satisfaction of clients' fulfillment, reduction of unfruitful stock and minimization of its exchange, and decrease of supply expenses.
Why is transportation so important? There are different kinds of transportation. Transportation is used to get people or things from point b to point a. Without transportation how would things get moved? According to an article written by Marco Cristini, transportation has had a huge impact on many countries and without transportation it would be difficult for customers to receive their items from oversea. Like Newton’s Third Law, transportation controls the opposed reaction to every action. For example, when purchasing items online from Ebay, a website that sells goods, Ebay uses FedEx to transport items to the customers. When it comes to logistics and supply chain, transportation plays a major role. Each of these has a role to play. They all are connected together in one way or another. Sheikh explains that logistics activities cover the entire supply chain so they become important involving in improving supply chain’s overall performance. The goal of the logistics process is to merge and organize all activities involved in acquiring, converting and distributing goods from raw materials to finished goods to the customer in order to achieve customer service objective in a proficient cost efficient way (Bryne and Markam, 1991). Logistics is the main event that is where everything is coming from. Logistic is a part of supply chain which is also a part of transportation. The supply chain consists of 3 areas which includes
First I introduce the logistics, logistics is define that the art and science of obtaining, producing and distributing material and product in the proper place and in the proper quantities. It is rapidly involving business disciplines that involve management to be deprecation warehousing, transportation,
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.
As a brief description of the subject in the study, the life cycle of logistics can also be maximized through establishing effective management organizing efforts to maintain a certain company’s operational structure that will avoid or prevent errors and mismanagement that can take place within the corporation. In this case, the 360 degree logistics can be found when there will be a capital expenditure that will be carried out to fund materials and human resources that will be helping to manufacture product. As soon as the product will be made and distributed to the market, there will be an exchange of commodity
For some countries like Vietnam, the definition of supply chain management is still not that well-known enough to apply. Some administrators have just been familiar with the term “logistics” and applied them for all the goods flows. However, supply chain system includes product development, manufacturing, purchasing, inventory, goods distribution and logistics activities. In other words, logistics is just a component of the supply chain. Ganeshan and Harrison (1995) defined that a process from purchasing raw materials, converting them to finished goods and distributing them customers. It is used in both service and manufacturing organizations. For example, a customer goes to Citymart to buy G7 3-in-1 coffee. The supply chain will start from the demand of this customer. Since Citymart has stored a certain amount of this type of coffee to supply, which may be provided from another merchant or directly from
Definition of logistics: Logistics is the process of planning, implementing and controlling the efficient, effective flow and storage of raw materials, in-process inventory, finished goods, services and related information from point of origin to point of consumption for the purpose of conforming to customer requirements