Lecture three recent trends in logistics.pptVIP

Lecture 3Recent Trends in Logistics Recent Trends in Logistics Third –party logistics(TPL or 3PL) Benchmarking Reverse logistics Global logistics Virtual warehousing Part 1 Third party logistics 1. Definition TPL service is something more than subcontracting or outsourcing . The latter typically covers one product or one function that is produced or provided by an outside vendor. Third-party logistics providers cut across multiple logistics functions and primarily coordinate all the logistics functions and sometimes act as a provider of one or more functions. They act as a bridge or facilitator between the first party and the second party. A TPL service provider doesn’t necessarily operate logistics by itself. 2. Reasons for using third-party logistics to reduce operating costs of manufacturers to use TPL’ specialized service to meet customer requirements to strengthen core competency Resources are limited There is insufficient time to develop the required logistics capabilities in-house; The company is venturing into a new business with totally different logistics requirements. Merger or acquisition may make outsourcing logistics operations more attractive than to integrate logistics operation. 3. TPL in China The development level of TPL in a nation may reflect the overall level of its logistics industry. In the U.S., the companies using TPL services completely account for 77%; in Europe, 79%;in Japan about 80%. But in China, the percentage of using 3pl is lower. There is a great potential for TPL’s development in China 4. Case study---China Container Shipping Corporation provides TPL service for ABC foreign company Background Self-operated logistics Using TPL service 5. Group discussion Why does Haier mostly operate logistics by itself instead of using TPL service? Outsourcing may disclose the business secrets. No TPL company has the capability to provide the logistics service as Haier expects.