Ways And Advantages And Disadvantages Of Third Party Logistics Enterprise

Innovations in transportation and telecommunications have introduced a number of opportunities for companies of all sizes and types to optimize their transportation networks. This paper provides a description concerning the design of a logistics network that consists of only one warehouse. A discussion concerning what steps will need to taken in order to design the optimal network is followed by a description of the information and data that is needed to make this determination. Finally, an assessment of the strategy will be employed in this network is followed by a summary of the research and important findings concerning these issues in the conclusion.

Due to the large quantity of freight and the long distance that it must travel to arrive to its destination exporters and importers alike have found logistic service providers essential to engage in international trade (Rodriguez, Comtois, Slack, 2013). While some Logistics service providers focus only on the area of transportation others specialize in freight consolidation, distribution management, and warehousing (Robinson, 2014). They have enough market knowledge, information and communication systems to offer supply chain solutions tailored to the specific needs of any company be it small or large (Rodriguez, Comtois, Slack,

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

Logistics clusters are geographical concentrations of companies in the transportation and distribution of goods. These clusters are growing all over the world around ports and airports and close to consumer locations in order to better serve the global supply chain. A few important logistics clusters are located in Rotterdam, Singapore, Memphis, and Panama for example. The primary reason for creating these clusters is that many benefits derive from having multiple related sources next to one another. When the different activities of logistics come together in a cluster, they are then able to share knowledge, a supply base, and their labor pools. As companies start to share knowledge of information they can then create trust amongst each other. After a bond of trust is established, different activities may start to collaborate and join activities in order to better enhance their business and serve their customers as best as possible. Having all of the different components located near each other and working together will then cause a positive feedback loop. A positive feedback loop will amplify any positive changes in the network and then cause others to want to join the cluster and therefore help it grow. Having a positive feedback loop will then cause vendors to want to

The Fast Moving Consumer Goods industry ( FMCG ) is one of the most top industries served by the third party logistics. The FMCG firms utilize the services that are provided by 3PL. The impact of Third Party Logistics on FMCG firms are on customer satisfaction, logistics system performance, the impact of 3PL also reduce the capital investment in facilities, reduction in investment in information technology, reduction in man power cost. The third party logistics also impact on the improvement of specific logistics function parameters, and improvement in inventory turnover rates. The 3PL has a positive and negative impact on FMCG

There are many challenges being faced by the logistics industry today as the companies strive for sustainability. This is because the providers of logistics services have, over a period of several years, found them being integrated into the production processes of their customers, while at the same time, governments and businesses have continued to carefully weigh the issue of logistics in their investment and business decisions. Some of the previous trends and the forces of the operations of logistics that drive the transformation of a Freight forwarding company will be examined. It will focus on theories, conceptual models and frameworks that explain logistic operations. The gaps in the logistics operations and the dangers of not addressing

This article reports the findings of a survey of large American manufacturers concerning their use of third-party logistics services. Data generated in the survey show that the use of such services by this group of companies continues to grow and that the service providers continue to deliver logistics cost and service improvements to their customers, both domestically and internationally. Many of the users of third-party logistics services now share their service provider with their large vendors and customers, and this has contributed to supply chain integration. Few existing 3PL relationships were

Unifying each aspect of a given logistics strategy to ensure overall network optimization is one of the main benefits of implementing a TMC. Implicit in this approach to logistics network planning and execution is the need for a distributed order management system capable of managing diverse inbound requirements, taking into account specific requirements of each shipment. Further, the TMC must also seek to optimize load levels and the orchestrated of 3rd party Logistics Providers (3PL) in conjunction with the overall structure and direction of the logistics strategy. Distributed order management systems also serve as the foundational element for creating greater levels of logistics and

This paper provides a basic but fundamental understanding of logistic primarily based on the book of “Logistics Management and Strategy” by Harrison and van Hoek. It will guide you through from the basic definition and concepts to the different supply chain strategies that exist, as well as providing a perception on the future logistic development. Explanation of principal terms like logistic, supply chain management and supply network is discussed, and important logistic systems like just-in-time, lean thinking and agile strategies are deliberated. Different ways of working together within the supply chain is debated, where there are different ways of sharing

During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers ' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics management is and what supply chain management is, weather or not that they are the same meaning in operations. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is a important strategy to manufacturing or service companies.

According to various studies, Berglund et al. (1999) explain that third party logistics has several definitions that are an activities consisting of transportation and management, and warehousing on behalf of the shipper are carried out. Wilding and Juriado (2004) define that a company who solely operates for the provision of logistics-related single or multiple services on a contractual basis, is called Third Party Logistics Company. Especially, the true third party logistics companies provide a solution to the problem in the supply chain by incorporating multiple logistics services that are managed solely or together (Schary and Larsen, 1995). Coltman, Gattorna and Whiting (2010) suggest that third party logistics companies must create a large range of services to meet their distinct needs. A definition by Lieb et al. (1993) explain that 3PL providers can assist the whole processes of supply chain or just only selected activities depending on a company’s preference. It is also conclude the definition of outsourced logistics services that the employ of external firms to provide logistics services for the whole or selected logistics activities within the process that have traditionally been performed within an organization is the outsourced logistics. The roles performed by the 3PL providers can be making especially to customers' requirements (The Client Company) derived from market demands and conditions.

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.

In order to deal with the ever growing changes in competition in the market, the company must take into consideration the speed, efficiency, and other conditions in the operation of strategies, and in crossing these socio economic barriers management plays a really important role, in the deployment of strategic plan s and objectives to deal with each issue that rises from every and each one of these barriers, therefore the industry needs to pay attention to the vertical integrative relationship among upstream suppliers, midstream retailers, as well as downstream retail customers, the transformational process of the global industry, and the need of the logistics management system is gradually

The biggest challenge faced by the organised logistics companies in India today, is competition from the unorganized operators. This is coupled with increasing environmental pressures, government regulations and subsidies for infrastructure development. Adding to all these, is the lack of “Industry status” to the logistics sector.

It is widely known that logistics plays a major role in the product and service production. Logistics is described as: ‘’the part of Supply Chain Management that