3pl Report

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.

Ford Motor Company, one of the world’s largest automotive manufacturers, has worked with Penske on several Six Sigma initiatives. As its lead logistics provider (LLP), Penske’s quality team of associates are trained in Six Sigma practices and work closely with Ford to streamline operations and create and maintain a more centralized logistics network. Together, they uncovered several areas for real cost savings as a result of reducing inbound carrier discrepancies, eliminating unnecessary premium costs and reducing shipment overages. Plus, Penske implemented accountability procedures and advanced logistics management technologies to gain more visibility of its overall supply network.

Operation leaders are tasked to identify the critical success factors and core competencies of their business functions and objectives in order to generate sustainable long-term growth. Critical success factors are actions essential for a business to reach its objectives. (Heizer & Render, p. 42, 2009). UPS’s key success factors are its efficiencies in scheduling, integrating the stream of goods, its ability to provide multiple solutions such as “harmonizing the flow of goods, information and funds across customer supply chains” while enabling consumers to “evolve in new and necessary ways” (Lewis, Forquer & Quinter, pg. 2, 2007). UPS’s environmental factors include their supply chain design and planning, competitors in logistics such as FedEx, distribution services, diversification in the global environment and focusing on differentiation. UPS is also an expert in its industry because the strategy is globally focused and is centered on diversification of its systems (See Appendix1.1)

(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.

The construction market structure and price pressure (as opposed to genuine supply chain waste reduction), have restricted the ability of 3PL’s to play a greater supply chain collaborative role during the downturn. Cost and efficiency reduction decisions have been egocentric at times in attempt for self preservation of an enterprise in the construction supply chain, sometimes resulting in cost saving issues being passed back up the supply chain. This has included moves to little and often deliveries at shorter lead times. 3PL’s have been able to provide collaborative network solutions that share fleet and facilities to reduce the cost impact and capacity flexibility to achieve these changing ordering patterns. Some 3PL’s have delivered a management, optimization and execution role in enterprises, working as a ‘4PL’ or Lead Logistics Partner. However, these roles have tended to provide value mainly to the contracting entity and not the wider construction supply chain.

Class: This required a wide range of application because if you focus to much on 3PL then you’ll be limited to what actually accounted for Wal-Mart decision not to pursue 3PL. To address this question properly, put on your logistics and “Supply Chain hat” and come along with me as we zoom through Wal-Mart. Don’t forget to wear your scholarly hat as well. Now, think about your recent visit to Wal-Mart with you girlfriend, wife, daughter, and son. Is either a good/bad feeling? So, let me talk about Wal-Mart.

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).

As discussed above, to reduce costs it would be reasonably advisable having closer partnerships with third-party logistics so as to understand each other’s needs and devise the best logistics

Despite the third- party logistics was an improvement studies area in a recent business market, the studies of this area still existed some arguments and limitation (Marasco, 2008). The literature review in TPL studies based on a comprehensive literature review, which including some relevant research paper and journal paper published within the period 1990 to recent years (Selviaridis and spring, 2007). Some existing studies focus on the benefits and limitation of TPL services for company management. Leahy (1995) and other scholars were defined as the TPL is usually associated with the providing of multiple services rather than just isolation transport functions (Leahy et al., 1995). Therefore, some other research believes that the TPL services can reduce the total

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.

Customers are becoming more cost-conscious and this is resulting in changes in our supply chain process in order to reduce production costs and remain competitive in our market. Outsourcing has become a necessary measure in order to cut costs and increase competitive advantage. Outsourcing certain aspects of the supply chain, while having both advantages and disadvantages, can be very beneficial to the company. When analyzing whether outsourcing will be good for the company, one must look at the advantages and disadvantages of outsourcing, how it will decrease costs and increase competitive advantage, and what changes will take place with a newly developed global workforce.

OPERATIONS AND SUPPLY CHAIN MANAGEMENT Vol. 2, No. 3, September 2009, pp. 167-171 ISSN 1979-3561|EISSN 1979-3871

The announcement today that DHL will be developing a global trading and transportation hub at the Cincinnati/Northern Kentucky Airport (CVG) signals a broader trend of freight forwarders, third party logistics (3PL) providers, and transportation services organizations to seek greater economies of scale to reduce lag times in supply chains (Schmidberger, Bals, Hartmann, Jahns, 2009). DHL is building a 180,000 square foot facility at the Cincinnati/Northern Kentucky Airport to support large-scale express shipment, better integrate with motor and rail carriers, and increase efficiencies of 3rd party logistics services across the 220 nations DHL serves (HeraldOnline.com, 2013).

In the article, “Best Practices for Transporters and 3PL Service Provider”, it talks about the advantages and disadvantages of third-party logistics. It also talks about how the industry is growing now and in the future. Third-party logistics primary focus is on global expansion. Expansion in the marketplace that can have a greater impact in a company’s supply chain management function. Most businesses today choose to outsource a portion if not all of its logistics functions to third parties in the hope of achieving operational efficiencies within the supply chain area of operations. By doing this companies are able to place more focus on core business activities. Third-party logistics providers has the capability of taking

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