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UNIT 3-LOGISTICS.pptx
1. Out sourcing logistics
Out sourcing logistics: Reasons: Third
party logistics provider-fourth party
logistics providers - Stages βRole of
Logistics providers
2.
3.
4. ο¨ Outsourcing logistics is when a company
uses an external provider(third-party) to
handle various supply chain functions.
ο¨ These can include a mix of shipping,
storing, packing and delivering a
companyβs physical goods, from raw
materials all the way to the finished
product.
5. Outsourcing's biggest advantages are
time and cost savings.
A manufacturer of personal computers might
buy internal components for its machines
from other companies to save on
production costs.
6.
7.
8. A third party logistics company can
store your inventory for you.
It will pick, pack, and ship your products.
3PL is the vital link between your
manufacturing operations and your
customers.
14. ο 1. Manufacturer storage with direct
shipping
ο 2. Manufacturer storage with direct
shipping and in-transit
merge (distribution technique where
shipments from different suppliers are
consolidated before delivery and then
sent to the same customer together)
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25. Fourth Party Logistics, popularly known as 4PL, is the
outsourcing of logistics operations to a single
partner.
The partner will be responsible for assessing, designing,
building, running and measuring integrated supply chain
solutions for the client.
4PL maintains a single point of contact for its operations.
26. ο¨4PL, is an operational model in
which a business outsources its
entire supply chain
management and logistics to
one external service provider.
27. 1. Add value relative to a firm managing its own
logistics providers.
2. Add growth in the supply chain surplus.
3. Facilitate the use of sophisticated information
technology.
4. Minimize production cost while meeting delivery
schedules.
5. Coordinate firms supply chain and improve
relationship between the logistics providers.
29. S.No 3PL 4PL
1 Specialize in the operational
element of supply chain
management
Manages all the activities of
supply chain
2 Targets a single function Manages the whole process,
sometimes even the 3PL.
3 Major, activities included
warehousing, Transportation
and Packaging.
Major activities included
Consultancy, Storage,
Distribution and processes.
4 Focused on day to day
activities.
Focused on optimizing supply
chain.