Logistics outsourcing and 3PL selection: A Case study in an automotive supply chain

Outsourcing logistics functions to third-party logistics (3PL) providers has been a source of competitive advantage for most companies. Companies cite greater flexibility, operational efficiency, improved customer service levels, and a better focus on their core businesses as part of the advantages of engaging the services of 3PL providers. There are few complete and structured methodologies for selecting a 3PL provider. This paper discusses how one such methodology, namely the Analytic Hierarchy Process (AHP), is used in an automotive supply chain for export parts to redesign the logistics operations and to select a global logistics service provider

Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future

This paper aims to analyze the potential future of the 4PL concept based on expert opinions with special regard to the influence of digitalization coming with a disruptive trans-formation of supply chains. Service arrangements, provider capabilities and benefits resulting from a 4PL partnership are compared in current and future configurations. The research follows an explorative mixed methods approach with semi structured interviews followed by an expert panel. This builds a basis for an online survey questionnaire to inquire on important future aspects for the 4PL concept by a sample of respondents from multinational companies. Our results show a clear trend away from simply organizing transportation and logistics activities towards the provision of an IT platform as well as further value-added service activities such as planning, analytics and monitoring. Along with this, IT capabilities appear to be an important differentiator for 4PL providers in the future. Moreover, relationships between 4PL providers and their clients become closer and more strategic, which leads to a customer valuing not only direct cost reductions but rather improvements resulting from optimized operations through superior analysis and planning functions

A Study On Influencing Factors And Performance Of Logistics Outsourcing Practices Among Electrical And Electronics Firms In Malaysia

Penyumberluaran aktiviti logistik telah menjadi strategi popular bagi kebanyakan organisasi dalam memburu kecemerlangan operasi di era persaingan sengit pasaran global. Logistics outsourcing has been growing as a popular strategy for many organizations in pursuit of operational excellence despite the fierce competitive market globally

Outsourcing the logistics function: the supply chain role of third-party logistics service providers in UK convenience retailing

Logistics, defined as the process of strategically managing the procurement, movement and storage of materials; parts; finished inventory and related information flow through the organisation and its marketing channels, is increasingly being recognised as a vital part of an organisation’s marketing strategy. In many organisations, the logistics function is currently facing significant challenges. Pressures from increasing competition and high customer service-level expectations have created a need for more professional and better-equipped logistics services. Confronted with such competitive pressures, these organisations are faced with decisions of the make OR buy kind with regard to the logistics processes of supply and distribution. In addition, the emergence of a need to focus on core capabilities has led many organisations to contract out all, or part of, the logistics function to third-party providers. This paper explores the challenges of outsourcing logistics in the UK convenience-retailing sector

E-commerce and its impact in logistic management: A state of art

Logistics management is defined as 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. Traditional logistical issues may be amplified by an e-commerce venture. Adopting e-commerce may greatly expand the marketplace. The organization needs to be concerned with its ability to deliver its product to potential customers. Realizing the importance of E-commerce in logistic management, an attempt has been made in this paper to review the existing literature with the objective to gain insights into the impact of E-commerce in logistic management. The advantages of the E-commerce in logistic management are offered. Finally, summary of findings and calculations are presented

Product bundling in global ocean transportation

There are over 20 'components' in an international door-to-door transportation, ranging from warehousing and distribution, to forwarding, documentation, transportation, customs clearance, etc..As tariffs in ocean transportation tend to converge due to competition and service homogenization, carriers, in competition with third party logistics service providers, strive to integrate door-to-door services under their control. In doing so, and among others, they invest heavily in logistics rather than ships that can nowadays be easily chartered in from institutional investors.Integration efforts however have been met with varying degrees of success in the face of skeptical and suspicious shippers requiring cost break down and more transparency. With the use of game theory, this paper attempts to develop winning service bundling strategies for ocean carriers, i.e. global supply chain solutions under all-in prices. Preliminary results show that, under certain conditions, bundling can be an equilibrium strategy for one or more carriers, and despite leveraging around captive liner services and potentially enhanced profits, bundling does not necessarily lead to a loss in social welfare.bundling;integrated logistics;liner shipping;vertical integration

Identification of Environmental Criteria for Selecting a Logistics Service Provider: A Step Forward towards Green Supply Chain Management

Green environmental performance increases the competitiveness of the supply chain. However, the greening of the supply chain depends on the manufacturer who drives the green initiative, as well as on all the members of the supply chain who take part in the process. The manufacturer’s attention has been largely focused on the environmental performance of the supplier and retailer, whereas logistics service providers have been somehow neglected. It is, in fact, the case is that logistics service providers have begun to play a critical role in supply chain management and could therefore significantly improve environmental sustainability. They have already undertaken a green initiative that unfortunately has rarely, if at all, been required by the manufacturer. The lack of requirements for logistics providers hinders the progress of a green initiative. To take a step forward towards green supply chain management, this chapter aims to introduce all the necessary criteria for the selection of a logistics service provider (LP), with an emphasis on environmental criteria. The environmental selection criteria, with all related subcriteria, were achieved on the basis of a systematic literature review. It has been found that buyers of logistics services still strive to minimize costs, expect quality logistics services, a well-positioned LP, all the while overlooking environmental issues. The most frequently applied environmental selection criteria are value-added reverse logistics services, followed by environmental expenditures, pollutants released, energy consumption, clean materials and energy use. The findings presented here are useful particularly for researchers, as issues regarding sustainable LP selection and its limitations are highlighted, related to selection criteria identification. These findings may be of less use to managers. However, future phases of this study, richer for the evaluation of logistics experts, will be much more applicable to buyers and providers of logistics services

Korean Domestic Third Party Logistics Providers: Research for a Global Market

The objective of this thesis is to contribute to the globalization of Korean domestic third party logistics companies. This is accomplished through a benchmarking model for globalization based on a comparative analysis of domestic and global third party logistics provider (3PLs) companies. The research performed a SWOT analysis to identify the capabilities required by Korean domestic 3PLs to become global 3PLs. The research investigated the following areas: 1) global service, 2) infrastructure, 3) supply chain management (SCM) services, and 4) information technology (promptness, visibility). This was accomplished by an extensive literature review, case analysis of logistics companies, and telephone interviews with individuals in charge of logistics. Four areas for improvement were identified: 1) Construction of SCM for one-stop service, 2) Utilization of the advanced IT systems for e-SCM, and consolidating communication network, 3) Expansion of logistics infra-structure by analyzing each region of the world for return on investment opportunities and competition, 4) Enlargement of scale in which Korean 3PLs must enlarge their scale of operations as soon as possible by strategic methods such as mergers and acquisitions (M&A) with local companies. There is potential growth for Korean 3PLs if they strive to enhance competitiveness as noted above and have government supports. These improvement areas provide a foundation for global competitiveness

How Third party logistics providers create effectiveness and efficiency by coordinating customers´activities an strategies

Logistics providers are developing competitive advantage by coordinating different customers logistics solutions. We are presenting some of the basic factors taken into consideration for a TPL firm when coordinating its customers. The possibilities to coordinate are dependent not only on activities of different customers, suppliers and customers´customers but also the attitudes and behavior reflected from their strategies. The dimensions of main importance for coordination are used as a base for finding suitable customer profiles. Finally we are discussing how the logistics providers effectively cope with the dynamic interaction and the network fit between customers.Customer coordination; Third party logistics providers (TPLs); Networks;