This website uses cookies to ensure you have the best experience. Learn more

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 and procuring transportation procurement, managing inventories, consulting and managing logistics, auditing and consulting freights, tracking and tracing shipments and offering reverse logistics and other value added services.
As disadvantage for 3PL is loss of control in some activities in the supply chain, but it is overcome by the main benefit - 3PL knowledge and expertise in the field.
2.3. Supply Chain Collaboration

In the past few decades companies have been looking into how they could collaborate with their clients and suppliers in order to ensure that the supply chain is efficient and responsive to market current needs (Fawcett & Magnan, 2004; Lejeune & Yakova, 2005). Dependency on each other in the current world market has become that important that one organization cannot reach the required efficiency level alone (Mehrjerdi, 2009). Collaboration consists of developing strategies in which two or more independent external or internal actors with different roles in the supply chain achieve their common aim in a competitive environment. These aims usually cannot be achieved by working separately. (Kumar & Banerjee, 2012). Therefore we can conclude that collaboration in the supply chain is vital to achieve competitive advantage and to improve companies’ processes.
Managing supply chain successfully involves such challenges as developing trust between members and collaboration with them (Mehrjerdi, 2009).
Collaboration between involved parties is significantly important. Collaboration, which is aimed at process integration in a supply chain, might impact total supply chain favorably (Lorentz, 2008). Lorentz (2008) also states that supply chain collaboration would reduce supply chain uncertainty, especially when it comes to shipments which are crossing borders. Collaboration will increase information and knowledge sharing. Even though Russia with a certain country (Finland in this case) has long history and experience in supply chain operations which are crossing borders, it does not mean that supply chain collaboration will be a success, but companies with large export volumes and which have high frequency will have higher positive performance level.
Ramathan & Gunasekaran (2012) have found out that collaborative planning, execution and decision making will lead to success of collaboration, but most likely collaborative planning and decision making will not mean that these activities will happen also in the future, collaborative execution will though. Success of collaboration will lead also to future...

Find Another Essay On The Advantages and Disadvanatges of Using Third Party Logistics Companies

Browsers and Third-Party Cookies Essay

751 words - 4 pages respondents would not consent to website analytics tracking, 85% would not consent to web browsing tracking for relevant ad, and 54% does not like. [4] When the options are available, 68% refuse to allow companies to share their information with a third party and 52% say that they choose to opt out of online behavioral advertising. Finally, there is precedence for this opt-in decision. In 2009 the European Union passed the E-Privacy Directive

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

The Effect Of Third Party Candidates In Presidental Elections

1478 words - 6 pages The Effect of Third Party Candidates in Presidental Elections Although citizens of the United States have the opportunity to vote for many different offices at the national, state, and local levels, the election of the president of the United States every four years is the focal point of the American political process. The American political system has maintained a two- party system since its inception. Political scientists argue that a two

Third Culture Kids: The Advantages of Raising a Family Abroad

749 words - 3 pages A Third Culture Kid (TCK) is defined by Drs. John and Ruth Useem as “Someone who, as a child, has spent a significant period of time in one or more culture(s) other than [his/her] own, this integrating elements of those cultures and their own birthday culture into a third culture”. As a TCK myself I believe that moving abroad is the opportunity of a lifetime that will enrich the lives of all family members, especially in a family that have

The Advantages of using Enzymes in Biotechnology

1159 words - 5 pages collagenase is made to optimize wound healing in the environment of the body.As you can see there are many advantages in using enzymes in biotechnology such as the improved productivity and cost-effectiveness in existing processes. If we can produce enzymes more efficiently then the amount of energy and raw materials needed to make a product can be halved. It also allows companies to tailor their enzymes more precisely to their customer demands

The Impact of a Third Party America´s Two Party Political System

1242 words - 5 pages policies in later elections. Therefore, it is obvious that the viewpoints of the Democratic and Republican parties have been affected by minor parties. Throughout American history, minor parties have adjusted and formed new parties concerning the issues, so the two major parties must switch their position as the issues change, allowing for the acceptance of many third party ideas.      For example, the Socialist Party is supposed to be responsible

Advantages of Using Internet

712 words - 3 pages Nowadays a lot of students can be seen using the internet to do their homework. Some may consider this as inappropriate and would prefer to stick to traditional methods of studying like books. Many others consider it almost impossible to avoid using internet as a source of information. During the past few years, it has become evident that studying from the Internet has become an integrated part of academics. Life without internet is impossible

Is the rise of intermodal international logistics affecting the operations of manufacturing companies?

2000 words - 8 pages Intermodal transportation has a significant role in international logistics and has changed the way manufacturing companies operate and do business. The purpose of this paper is to demonstrate that intermodal international logistics affects the operations of manufacturing companies. In particular, the factors contributing to the rise of intermodal transport will be discussed, and also the changes in manufacturing operations that utilise the

The Advantages of Using the Interactive Whiteboard in the Classroom

1644 words - 7 pages and has generally made learning more fun for both teacher and student. There are many articles about the use of interactive whiteboards and there have been researchers throughout the world measuring the benefits that these boards are providing to the impact of learning and delivery of knowledge. Research provided in the literature was done mostly with primary school aged children and completed using different areas of the curriculum. The

advantages and disadvantages of using a handphone” . - ipg - speech

409 words - 2 pages Good morning to my lecturer and my classmates, in this beautiful morning, I am here to present a talk on the topic “advantages and disadvantages of using a handphone” . Handphones are very common to everyone in the society. It has become an indispensable part of our daily lives. Handphone allowed all the human in this world stay connect with each other by make voice calls or send messages although in far distance. The handphone in this era is

advantages and disadvantages of using jargons on one's language development

514 words - 3 pages award and one of those honor pupils.At grade three, I was more independent and confident. I had many friends in school. Got a good grade and received award as third honor in our class.Life is ok for me then when my mama decided to enrol me in other school when I was grade four. The school is near with my grandmother's house. I studied there until grade six. It's a new school and new classmates. I meet new friends. I eventually adjust to the new

Similar Essays

Importance If Third Party Logistics Essay

1893 words - 8 pages their process efficiency. Further, outsourcing to 3PL companies saves a great deal of time, and expenses otherwise incurred in maintenance and training the personnel (Economides, N. 1996). Emergence of 3PL The Third Party Logistics system has been evolving rapidly in response to the changing requirements of industry and consumers. Changes in the global and local economies have had major effects on 3PL activities in Australia. Improved

Third Party (3 Pl) Logistics In India

2165 words - 9 pages , K. and Lieb, R. (2010), “Environmental sustainability in the third party logistics (3PL) industry”, International Journal of Physical Distribution & Logistics Management Vol. 40 No. 7, 2010 pp. 524-533 • Hwang, H.S, Moon, C, Chuang, C.L. and Goan, M.J. (2005), “Supplier Selection and Planning Model Using AHP”, International Journal of the Information Systems for Logistics and Management (IJISLM), Vol. 1, No. 1, pp. 47-53 • Thakkar, J. et al 2005

Advantages And Disadvanatges Of Outsourcing Essay

2611 words - 11 pages too short and they do not quite understand the advantages of outsourcing itself. With this advantage they can develop their skills with the expertise they can only be imposed from the outside with a very reasonable cost compared to those taking experts from abroad to their companies which necessarily increase the cost of their operations. As performed by the Royal Bank of Scotland which they outsourcing employees for information technology

The Advantages And Disadvantages Of Using Cloud Computing Service

830 words - 3 pages specific community that has similar interests and requirements. Public cloud is owned and operated by third party, were it is available for the public on a commercial basis. Lastly, hybrid cloud is two or more deployment like private, community and/or public; this gives the user the ability through their interface to allow data, and also applications to move them from one cloud to another.The advantage of using cloud-computing service is that it