第九章Recent Trends in Logistics.pptVIP

Chapter9 Recent Trends in Logistics Text A. Third Party Logistics What is Third Party Logistics（TPL or 3PL）？ Third Part Logistics provides all the logistics services. They act as a bridge or facilitator between the first part(supplier or producer)and the second part(buyer or customer)[1]. The primary objectives of third part logistics providers are to lower the total cost of logistics for the supplier and improve the service level to the customer. Third Part logistics have been growing rapidly . Cost reduction and demands for better and cheaper services are the main drives behind the growth. A third part logistics provider will be in a position to consolidate business from several companies and offer frequent pick-ups and deliveries , whereas in-house transportation cannot.[2] Other reasons are as follows; * The company does not specialize in logistics * The company does not have sufficient resources * Eager to implement better logistics operation or does not have time to develop the required capabilities in-house; * The company is venturing into a new business with totally different logistics requirements; * Merger or acquisition may outsourcing logistics operations more attractive than to integrate logistics operations[3] Except for the management know-how, variable cost is another major concern for manufacturers in employing 3PL[4] As more and more manufacturers are outsourcing their logistics operations to the experts, the demand for 3PL increases dramatically. Manufacturers nowadays concentrate more on their core business, outsourcing their logistics operators. Take the example of precision engineering firm Shinei international which started off by leasing some warehousing space from Keppel Logistics. Over the years, this relationship has grown and extended, Today, the company has out-sourced its entire logistics operations and management to Keppel Logistics. The functions of 3PL cover all the aspects of logistics. One of its functions is as a one-st