Importance If Third Party Logistics Essay

1893 words - 8 pages

Executive Summary
The performance of the logistics system has a major impact on cost structures, revenues, service quality, and competitiveness in Australian industry. Logistics activities have been evolving rapidly in response to changes such as globalization, general industry restructuring, new production processes, and technological advances.

Many firms, government agencies and joint industry/government bodies are developing programs to improve logistics performance in Australia. The initiatives include the Freight Transport Logistics Industry Action Agenda.

This report develops a broad framework for analyzing logistics activities in Australia. This report will also look at the importance of Third Party Logistics to the Australian business. We will also look at the emergence of the 3PL in Australia and what benefits do the businesses get by adopting the 3PL.

The most significant supply chain trend that is affecting business in Australia.

Introduction
Ever increasing competition in today’s global markets, introduction of new products with shorter lifecycles, faster dissemination and proliferation of information and heightened expectations of customers have forced enterprises to invest in, and focus attention on, entire supply chains. Today, some companies are extending their reach outside of traditional supply chain boundaries to engage in activities that go beyond their own sphere of control. To do this, they organise competitive networks of enterprises to develop and access supply chain capabilities for those organisations that are part of such value-adding networks. The scope of this research report covers aspects ranging from in-house logistics, with a focus on productivity, cost-savings and functional excellence, to various outsourcing business models.

The modern concept of logistics incorporates activities (e.g. transport, storage), which date back to the earliest forms of organised trade (Lambert et. al. 1998, p. 5). The term was initially developed in the context of military activities in the late 18th and early 19th centuries. A key element of logistics, the trade-off between transport and inventory costs, was formally recognised in economics at least as early as the mid 1880s (Langley 1992, pp. 19-20).

Definition
The concept of logistics has evolved over time in response to factors such as changes in the business environment. Grunnet (1996, p.32) notes that the focus was inventories in the 1950s, distribution in the 1960s, production in the 1970s, purchasing/production/sales in the 1980s, and business process in the 1990s. Logistics can be 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 customer’s requirements.

There are many different types of logistics service providers (LSP’s). Prime Assed Provider, Third Party...

Find Another Essay On Importance if Third Party Logistics

7 Careers in Logistics Essay

2017 words - 8 pages Melissa GreenCareers In LogisticsAlthough most college students do not see logistics as a very probable employment field, it is actually an area of great importance to everyone (Gibson, 1985,p. 2). Logistics is a broad career field that includes a wide variety of jobs. In this paper I will discuss and analyze seven major careers in logistics: administrative manager, inventory control manager, warehousing manager, administrative analyst

Logistics, History, and Principles of LEAN Manufacturing Approach

978 words - 4 pages . Then the second goal is visualize where the waste is and allocate resources where the biggest opportunities for improvements are, so we can get the most out of them. The third and also very important objective is to improve the customer delivery performance while also reducing the total logistics costs. For achieving this goal it is very important to apply lean tools and systemic improvement methods. The reason is that in the same system if we

Case Study RBS

595 words - 3 pages and logistics services can also benefit from a third party logistics providers improve consistently. Reduced inventory costs: through outsourcing access to state of the art can reduce the amount of inventory required in the system through physical distribution. capital investment reduction: the use of facilities and equipment supplier outsourcers do not have to deal with investment assets logistics system upgrade: outsourcers can gain access to

Managing Supply Chain Disruptions

1034 words - 4 pages -time enterprise helps reduce cost because the organization is able to maximize its automation and strive for a leaner inventory, which helps negate costly storage. Managing Supply Chains, Third Party Logistics Third-party logistics companies are becoming more popular for many businesses. Most third-party logistics companies are responsible for the supply chain and distribution of the outsourcing product. Some Third-party logistics

Global Business Organisation

1377 words - 6 pages a leading company in the Chinese appliance industry, which initially hired the third party logistics to service for them. The professional third party logistics entirely managed the company's transfer needs. This kind of contract manufacture can assist TCL to concentrate their attentions on their professional production, such as research, development and innovation. As investigated, TCL is not required to invest any one truck, or any one modern

Case Study: BASF

1504 words - 6 pages be changed to help the staff gain the right understanding of the importance of logistics, logistics sophistication, the objectives of logistics and how to better manage this function3.2 Implementation of one single logistics strategy within the regional companyAbove all, the parent company should centralize the logistics management in forming a single logistics strategy for its regional companies to implement. Only by this way can it set up the

Business planning Restructuring

4928 words - 20 pages $35,000.00 Total Software Cost $35,000.00The third phase of the Logistics department restructuring will include the training of 13 personal for internal relocation to help meet the demands in other departments that our increased production will bring about. We at ABC Widgets feel that retention of one of our finest assets, our employees, is well worth the $65,000

Reverse Logistics as an Integral Part of Supply Chain Management

2563 words - 10 pages the $1.9 billion company maintains tight control over its equipment with the help of its third-party service provider, CF Reverse Logistics, a division of Consolidated Freightways. About three years ago, Witco hired CF to track, monitor, and arrange the return of the reusable equipment, reports Sheldon Ellis, Witco's international logistics manager. Customers call a toll-free number to notify the company when the empty totes will be ready for

Business Logistics in Australia Case Study

1964 words - 8 pages There are two E-commerce scenarios that have been looked at that face logistical issues in Australian organisations of Big W and Oz Hut and through the analysis of these organisations we will be looking into the systems used and how they are dysfunctional to these companies. Also exploring better ways to improve order fulfilment, third party logistics and the growing online retailing industry of changes needed to enhance competitiveness. With

Reconfiguration of supply chains and implications for transport

7002 words - 28 pages . Production postponement means that modular components are producedaccording to forecasts, and then assembled, packaged or otherwise completed at apoint downstream in the supply chain, closer to the customer, e.g. at the logistics centerof a third party. Logistics postponement is understood as a centralization of inventory,to a single distribution center or to a few regional distribution centers, until the actualorders are received. At this point, the

John Deere Logistics Cost Analysis

1031 words - 4 pages supply chain is more reliable and having great relationships with suppliers lead to increased efficiency. If an IT system is put in place where trucks can be tracked on route, load capacity, and arrival time, the outbound and inbound logistics can be controlled in a precise fashion optimizing full truck loads per shipment and precise arrival times to minimize inventory holdings. In essence the mobile trucks will become mobile inventories dropping

Similar Essays

Third Party (3 Pl) Logistics In India

2165 words - 9 pages domestic as well as global level to gain high profit and the competitive advantage (Mothilal, S. et al, 2012) in global level. Now third-party logistics (3PL) service is gaining importance in the Indian organizations. The main issue is that they are unable to manage complex supply chains network with the global supply chain. So now these companies are outsourcing their logistics service to the 3PL service providers to enter in global competition. The

The Advantages And Disadvanatges Of Using Third Party Logistics Companies

980 words - 4 pages In order to improve operational efficiency, many companies have chosen to outsource part or all of their logistics activities to third parties. By doing that, company can focus more on its core activities. Green, Turner, Roberts, Nagendra & Wininger (2008) have found out that third-party logistics (3PL) companies typically offer services that cover warehousing, distribution, inventory control, packaging and transportation, such as contracting

Importance Of Third Party Political Organizations In The Us

852 words - 4 pages political parties such as Libertarian Party that have ideas on how to save the economy and reform social security. Third party political organizations are an important part of the United States government. One of the major issues that the Constitution Party is currently against is gun control. In order to support their disagreement with the policy they call upon the 2nd Amendment of the Bill of Rights, which preserves citizens of the United States

Beverage Industry Logistics Essay

2867 words - 11 pages Research in Business Vol 3, No 9. 7. Ma, H. and Suo, C. (2006), “A model for designing multiple products logistics networks” International Journal of Physical Distribution & Logistics Management Vol. 36 No. 2, pp. 127-135 8. Stefansson, G. (2006), “Collaborative logistics management and the role of third-party service providers” International Journal of Physical Distribution & Logistics Management Vol. 36 No. 2, pp. 76 92 9. Bumstead, J. and