Third Party Logistics (3PL) Chapter 3

Outsourcing fulfils 2 needs It improves service levels by improving flexibility and inventory management It reduces costs in various ways Outsourcing fulfils 2 needs

Services of 3pl Basic services Physical contract logistics services Management contract logistics services Integrated contract logistics Services of 3pl

Using 3pl providers can allow To penetrate new markets Reduce the inherent financial investment risks like owning trailers and warehouses Coordinate producers and distributors within a global approach Access new technologies, sophisticated warehousing operations or new delivery options Using 3pl providers can allow

Strategic risk Commercial risk Management risk Risks associated

Benefits from 3pl services Lower cost Improved expertise Market knowledge and data access Improved operational efficiency Improved customer service Ability to focus on core business Greater flexibility Benefits from 3pl services

Decision before allocation Company needs(is logistics a core competence?) Tangible values (are there any measurable advantages?) Management commitment Provider capabilities Decision before allocation

Queries?