Third Party Logistics

The third party logistics (TPL) and fourth party logistics (FPL) act as a support system for companies to effectively formulate and manage their supply chain process.

4. Logistics is a critical part of a supply chain that is an integration of the logistics systems in all the organizations

International trade is defined by shipping commodities and finished goods between countries, including both exporting commodities and goods from the U.S. as well as importing commodities and goods from around the world. Logistics is the process of planning, implementing, and controlling the efficient flow of goods and services through the supply chain from producer to consumer. Distribution comprises all freight carriers (water, air, trucking, and intermodal) and warehousing. Until recently, most manufacturing organizations took responsibility for the warehousing

Outbound logistics refers to physical distribution activities such as collecting, storing, and distributing products to buyers and involves (finished goods) warehousing, materials handling, network planning and management, order processing, and

Over time, new healthcare reform measures were causing fundamental changes in reimbursement for services to hospitals and IDNs. Consequently, healthcare providers had to establish financial stability. This opened the door for third-party logistics providers (3PLs) to establish a strong presence in the healthcare industry. 3PLs? offered solutions to mitigate transportation and supply chain expenses that streamlined the order-to-delivery process and reduced expenses.

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 selected business functions that outsource to a third party has become a common practice in the corporate world. The function of logistics is often to outsourced and providing logistics service companies have evolved into providing a vast range of logistics functions including inventory management, transportation services and warehousing services. The companies which provides logistics services on contract to other companies are known as Third Party Logistics Providers ( 3PLs).

A review of literature is emphasizing the 3pl (third party logistics) performance which is cost efficient tool for FMCG (fast moving consumer goods) companies. Companies outsource their logistics and warehouse activity to the third party logistics to reduce the cost, which is directly effect on company’s other core function like production, procurement, finance. It gives competitive advantage to the company. Outsource the logistics and warehousing also directly effect on asset reduction and staff retrenchment. Today the firms are establishing symbiotic relationship among them, that is (win win situation) they all are beneficiaries.

Abstract this paper introduces ways and advantages of third-party logistics enterprise servicing manufacturing enterprise, analyses supply-chain of manufacturing enterprise and further studies for the organization structure of third-party logistics enterprise servicing manufacturing enterprise, to seek to the enterprise organization structure which has the best combination in third-party logistics enterprise with manufacturing enterprise. Keywords: Third-party logistics enterprise, Manufacturing enterprise, Organization structure 1. Current Situation of Foreign Funds in China Insurance Industry Following the rapid development of third-party logistics enterprises and industrial structure entering the mid-term of industrialization in our country,

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).

However, as one looks to the future, technology will play an essential role in enabling the desired changes. Technology will help make feasible the new logistic capabilities needed to support future industrial concepts and the type of efficient, responsive logistic system that business forces will demand”.[1] Traditionally, China is a country with relatively weak formal institutions; more importance is given to informal constraints, e.g. personal relationships. As a result, Chinese companies rely upon a network-based strategy of growth, based on personal trust and informal agreements among managers. These are important considerations for managers when forming business relationships and designing their supply chains in China. “Although customers are spending more on average for logistics outsourcing, the percentage of budget devoted to outsourcing logistics, and the services outsourced, haven’t changed dramatically over the past several years. Companies continue their general tendency to outsource relatively commoditized services”.[2] As a result of the market shift from cost-driven to quality-driven in the near future, the strategies for logistics service providers will include: more flexibility, quicker handling, better price stability, higher transparency and increased professionalism, in order to meet the challenges. “The next five years will see a significant increase in outsourcing activity. 3PLs will be the main beneficiaries of this process and as the

Third-Party Logistics have continued to play a strategic role in the management of supply chains most especially in the developed world over the past years and has seen a consistent increase in its usage in the world. In Malawi the concept is still new and has also been adopted by the public sector. There are clearly benefits associated with the use of the approach which enables companies to concentrate on their core competencies. However, there are critical issues to be addressed in order to experience the benefits. This

Indeed use of third-party logistics (3PL) firms in transportation helps firms to meet complexities of global trade, worldwide increased competition, as well as the constant downward pressure in terms of prices and margins. This is in a bid to build up better logistic systems that can fulfill their needs for better services at a lower cost. Among the reasons as to why companies use 3PL firms is to outsource non-strategic activities which enables organizations to concentrate on the major competencies as well as to exploit external logistics expertise, (Ivan Su Hertz, Susanne, 2009). These third party firms have the capability of developing unique assets, acquiring the necessary resources and achieving superior logistics performance using 3PL relations. Companies therefore find it efficient and effective method of achieving the needed service with no engaging so much in investing new capabilities and in assets upon entering into a relationship with 3PL firms.

Internal logistics is one of the most important sections within enterprises, especially in the large manufacturing companies. It manages, arranges, plans and delivers the finished products. It is an indispensable part of the supply chain, as well as reflects the result of implementation company strategy.

In the Indian scenario, with relatively less importance given to efficient logistics, the market leaders in beverage industry like Coca Cola, PepsiCo and Parlé Agro have their own well established strong logistics network. The other small scale industries producing both carbonated and non-carbonated soft drinks in glass/ PET bottles or in Tetra Pak cartons have a comparatively well established third-party logistics system. They have the help of local providers in providing vehicles for small transfers which help them in overcoming problems such as demands for bribes by retailers, security and other logistics