The document discusses third party logistics (3PL). It defines 3PL as using third party businesses to outsource elements of distribution, warehousing, and fulfillment. This allows companies to focus on their core business while 3PL providers handle logistics functions. The document outlines the advantages of 3PL, such as reduced costs, lower capital requirements, and increased flexibility. It also discusses some disadvantages like loss of control and challenges with returns processing. Finally, it describes different types of 3PL providers based on the services offered.
This is a Mini Project on Third Party Logistics (3PL). I covered important information including meaning of 3PL,its types . Advantages and Disadvantages.
This is a Mini Project on Third Party Logistics (3PL). I covered important information including meaning of 3PL,its types . Advantages and Disadvantages.
Leveraging the cloud for improved performanceCTRM Center
While delivery of applications and services in the cloud has been a part and parcel of business for over a decade, adoption of cloud-delivered CTRM applications (not to be confused with hosted solutions), has taken time to develop. However, the collapse in commodity prices and profitability over the last several years has incentivized firms in the commodities space to rethink their approach to acquiring and managing IT solutions.
With increasing market experience with these products, market activity over the last few years indicates that adoption of cloud CTRM solutions is increasing rapidly as the lower cost of entry, benefits of a pay as you go approach, and realization that the cloud can actually be more secure than on-premises, have all aided its growth.
Uniform vs. Retailer-Specific Pricing: Incentive Alignment to Enhance Supply ...Leo Gomes
Paper summary by Leo Gomes
Vakharia, A., Wang, L., 2014, Uniform vs. Retailer-Specific Pricing: Incentive Alignment to Enhance Supply Chain Efficiency, POM 23(7), pp. 1176-1182
The pandemic confirmed the critical and strategic importance of supply chain management. Lessons learned/takeaways have created a new SCM. Part 1 focuses on the supply chain itself with an operations take. Structure--organization, technology, and process. Upstream. Downstream. Digitization. Blockchain. Visibility. Metrics. The scope, size, and complexity of supply chains, especially upstream/inbound. This is also meant to challenge traditional views.
Part 2 will present supply chain management in the context of key topics that are happening.
Third Party Logistics Singapore: An Overview, Benefits, and Use CasesRaks International
Third-party logistics (3PL) Singapore refers to the outsourcing of logistics and supply chain management functions to a specialized external service provider. In Singapore, 3PL providers play a crucial role in facilitating efficient and cost-effective distribution and fulfillment operations for businesses across various industries. Contact Raks International at +65-62653228.
Leveraging the cloud for improved performanceCTRM Center
While delivery of applications and services in the cloud has been a part and parcel of business for over a decade, adoption of cloud-delivered CTRM applications (not to be confused with hosted solutions), has taken time to develop. However, the collapse in commodity prices and profitability over the last several years has incentivized firms in the commodities space to rethink their approach to acquiring and managing IT solutions.
With increasing market experience with these products, market activity over the last few years indicates that adoption of cloud CTRM solutions is increasing rapidly as the lower cost of entry, benefits of a pay as you go approach, and realization that the cloud can actually be more secure than on-premises, have all aided its growth.
Uniform vs. Retailer-Specific Pricing: Incentive Alignment to Enhance Supply ...Leo Gomes
Paper summary by Leo Gomes
Vakharia, A., Wang, L., 2014, Uniform vs. Retailer-Specific Pricing: Incentive Alignment to Enhance Supply Chain Efficiency, POM 23(7), pp. 1176-1182
The pandemic confirmed the critical and strategic importance of supply chain management. Lessons learned/takeaways have created a new SCM. Part 1 focuses on the supply chain itself with an operations take. Structure--organization, technology, and process. Upstream. Downstream. Digitization. Blockchain. Visibility. Metrics. The scope, size, and complexity of supply chains, especially upstream/inbound. This is also meant to challenge traditional views.
Part 2 will present supply chain management in the context of key topics that are happening.
Third Party Logistics Singapore: An Overview, Benefits, and Use CasesRaks International
Third-party logistics (3PL) Singapore refers to the outsourcing of logistics and supply chain management functions to a specialized external service provider. In Singapore, 3PL providers play a crucial role in facilitating efficient and cost-effective distribution and fulfillment operations for businesses across various industries. Contact Raks International at +65-62653228.
Meaning of Logistics and Logistics Management, Logistics Management to Supply Chain Management, Decision areas in Logistics; Key Players in Logistics; Role of Logistics in (a) Supply Chain, (b) the Economy, (c) the Organization; Role of Government in Logistics; Classification of Logistics Applications.
Right Third-Party Logistics Provider - How to ChooseUnited Ravens
Choosing the right third-party logistics provider is a critical decision that can significantly impact your business operations. We will learn about 3PL providers, how they work, the services they offer, and how to choose the right third-party logistics provider.
Right Third-Party Logistics Provider - How to ChooseUnited Ravens
Choosing the right third-party logistics provider is a critical decision that can significantly impact your business operations. We will learn about 3PL providers, how they work, the services they offer, and how to choose the right third-party logistics provider.
The Ultimate Guide to Selecting Your 3PL Warehousing Partner is your comprehensive resource for navigating the complex process of choosing the right third-party logistics 3PL warehousing partner for your business. This guide provides invaluable insights, expert tips, and actionable strategies to help you make informed decisions and find the perfect match for your logistics needs. From understanding your specific requirements to evaluating potential partners, negotiating contracts, and ensuring seamless integration, this guide covers every aspect of the selection process. Whether you're a small startup or a large corporation, this ultimate guide equips you with the knowledge and tools necessary to forge successful partnerships and optimize your supply chain operations.
It can be hard to keep track of the Pros and Cons of Third-Party Warehousing and fulfillment along with all the other work you need to do to run your business. Imagine that you are always busy, that your sales go in cycles, or that you don’t have enough infrastructure. In that case, your business might benefit from working with a third-party logistics (3PL) provider for its Pros and Cons of Third-Party Warehousing and fulfillment needs
Unit 3 Forecasting systems design - Understanding the systemAnanya A
. Understand Supply Chain Dynamics:
Gain a comprehensive understanding of the entire supply chain, including procurement, production, logistics, and distribution. Recognize how different stages of the supply chain may influence demand.
2. Collaborate with Stakeholders:
Involve key stakeholders from different departments such as sales, marketing, production, and logistics. Their insights and expertise will provide valuable information for accurate forecasting.
3. Data Integration:
Integrate data from various sources within the supply chain, including historical sales data, inventory levels, supplier performance, and external factors such as market trends or economic indicators.
4. Demand Segmentation:
Segment your products or services based on characteristics that affect demand, such as seasonality, product life cycle, or customer demographics. Differentiated forecasting methods may be applied to each segment.
5. Technology Selection:
Choose forecasting technologies that integrate seamlessly with other SCM systems. This might include Enterprise Resource Planning (ERP) systems, Warehouse Management Systems (WMS), and Transportation Management Systems (TMS).
6. Consider Lead Times and Variability:
Account for lead times in the supply chain when forecasting. Understand the variability in lead times and demand patterns to optimize inventory levels and reduce the risk of stockouts or overstocking.
7. Dynamic Models for Supply Chain Events:
Design dynamic forecasting models that can adapt to sudden events in the supply chain, such as disruptions in the supply network, changes in supplier capabilities, or unexpected demand fluctuations.
8. Demand Shaping Strategies:
Implement demand shaping strategies to influence customer demand positively. This may involve promotions, discounts, or other marketing initiatives to align with forecasted demand.
9. Risk Assessment:
Incorporate risk assessments into the forecasting process. Identify potential risks and uncertainties in the supply chain, such as geopolitical issues, natural disasters, or supplier reliability, and develop contingency plans.
10. Real-time Visibility:
Aim for real-time visibility into supply chain activities. Use technologies like IoT devices, RFID, and advanced analytics to monitor the movement of goods, track inventory levels, and gather real-time data for more accurate forecasting.
11. Performance Metrics:
Establish key performance indicators (KPIs) to measure the accuracy and effectiveness of the forecasting system. Regularly assess forecast accuracy, bias, and other relevant metrics to identify areas for improvement.
12. Continuous Improvement:
Emphasize a culture of continuous improvement. Regularly review and update forecasting models based on changing market conditions, technology advancements, and feedback from actual performance.
13. Sustainability Considerations:
Consider sustainability factors in forecasting, such as the environmental impact of production and transportation.
2. DEFINITION OF LOGISTICS
According to the Council of Supply Chain Management Professionals (previously the Council of Logistics
Management),logistics is the process of planning, implementing and controlling procedures for the efficient and effective
transportation and storage of goods including services and related information from the point of origin to the point of
consumption for the purpose of conforming to customer requirements and includes inbound, outbound, internal and external
movements.
MEANING OF LOGISTICS
Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense,
logistics is the management of the flow of things between the point of origin and the point of consumption to meet
requirements of customers or corporations. The resources managed in logistics may include tangible goods such as materials,
equipment, and supplies, as well as food and other consumable items. The logistics of physical items usually involves the
integration of information flow, materails handling, production, packaging, inventory, transportation, warehousing, and
often security.
3. WHAT IS THIRD PARTY LOGISTICS
Third-party logistics (abbreviated as 3PL, or TPL) in logistics and supply chain management is an organization's use
of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services.
In the last century, the product selling process involved two parties, manufacturers and suppliers. But now, in this digital
economy, a third party has emerged that manages and ships the inventory.
They are necessary because most ecommerce stores simply can’t manage all aspects of the business from product
manufacturing (sometimes retailing) to marketing, sales, inventory management, and shipping. The 3PL providers help them
take half of these services off their hands, allowing them to work on expanding their business
4. Third Party Logistics (3PL) vs Dropshipping
Both of these processes differ in concepts. In Dropshipping, you have an ecommerce store and not the actual product from
the supplier.
Instead, you tend to keep a commission for selling someone else’s products. In short, you never store these products in
your store. You simply act as a broker. That’s why this concept is also called as arbitrage.
You don’t have to worry about logistics or procurement because it is the wholesale supplier who handles these operations.
You just have to market your ecommerce store and when you get an order, you forward it to a supplier.
In 3PL, you are doing the total opposite. You are managing the inventory of an ecommerce store. When someone orders a
product from your client’s ecommerce store, you ship it.
You don’t handle marketing or sales, or customer service as it is the duty of the ecommerce store team. Think of yourself
as half-owner of the ecommerce store.
5. Types of third party logistics
Standard 3PL Provider:
This is the most basic form of a 3PL provider. They would perform activities such as, pick and pack, warehousing, and
distribution (business) – the most basic functions of logistics. For a majority of these firms, the 3PL function is not quite their
main activity.
Service Developer:
This type of 3PL provider will offer their customers advanced value-added services such as: tracking and tracing, cross-
docking, specific packaging, or providing a unique security system. A solid IT foundation and a focus on economies of
scale and scope will enable this type of 3PL provider to perform these types of tasks
6. The Customer Adapter:
This type of 3PL provider comes in at the request of the customer and essentially takes over complete control of the
company's logistics activities. The 3PL provider improves the logistics dramatically, but does not develop a new service. The
customer base for this type of 3PL provider is typically quite small.
The Customer Developer:
This is the highest level that a 3PL provider can attain with respect to its processes and activities. This occurs when the 3PL
provider integrates itself with the customer and takes over their entire logistics function. These providers will have few
customers, but will perform extensive and detailed tasks for them.
7. Advantage of third party logistics
Cost and time savings
Logistics is the core competence of third-party logistics providers. Providers may have better related knowledge and greater
expertise than the producing or selling company, and may also have more global networks enabling greater time and cost
efficiencies.
The equipment and the IT systems of 3PL providers are constantly updated and adapted to match the requirements of their
customers and their customer’s suppliers. Producing or selling companies often do not have the time, resources, or expertise
to adapt their equipment and systems as quickly.
Low capital commitment
If most or all operative functions are outsourced to a 3PL provider, there is usually no need for the client to own its own
warehouse or transport facilities, lowering the amount of capital required for the client's business. This is particularly
beneficial if a company's warehouse has high variations in capacity utilization, leading to overpurchasing of warehouse
capacity and reducing profitability.
8. Focus
Logistics outsourcing allows companies with limited logistics expertise to focus on their core business. Increasing complexity
in business suggests that companies benefit from not devoting resources to areas in which they are not skilled.
Flexibility
Third-party logistics providers can provide higher flexibility for geographic distribution and may offer a larger variety of
services than clients could provide for themselves. Postal services and private couriers typically factor in distance when they
calculate the cost of shipping; many 3PL providers market the benefit of what is known as zone skipping to potential clients,
because it shortens the distance between products to be shipped and customers, resulting in lower shipping costs.This also
allows businesses to more predictably manage their resources including workforce size, and turn fixed costs into variable
costs.
9. Disadvantages of third party logistics
Loss of control
One disadvantage is the loss of control a client has by using third-party logistics. With outbound logistics, the 3PL provider
usually assumes communication and interactions with a firm's customer or supplier. To mitigate this, some 3PL’s attempt to
brand themselves as their clients, such as applying clients' logos on their assets and dressing their employees like their
clients' employees.
IT
The IT systems of the provider and the client must be interoperable. Technology helps increase visibility for the client by
way of continuous status updates via Dispatch Management Software and Electronic Data Interchange (EDI) which does
involve a cost, but it can help avoid penalties for delays and subsequent financial losses such as from not unloading freight
in time.
10. Reverse logistics
Numerous studies have shown that selling products online, rather than in a brick and retail environment, adds extra costs
when it comes to handling returns (i.e, reverse logistics).The reliance upon third-party logistics providers to handle aspects of
the E-commerce supply chain such as warehousing and pick-and-pack also means these companies must be relied on to
handle reverse logistics. Artificially induced demand events such as Black Friday in the United States or Singles' Day in
China come with an influx of returned products, which can slow down warehouse operations and in turn delay the issuing of
refunds or other methods for mitigating dissatisfied customers. The additional layer of a third party to handle sensitive
customer-facing issues such as returns is thus a heavily-debated topic within the realm of E-commerce.