How to Choo an Effective Third Party Logistics Provider
by Seyed-Mahmoud Aghazadeh
Abstract
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The purpo of this article was to identify the steps that need to be taken when choosing an effective third party logistics provider. Bad on the re-arch completed, it was determined that third party logistics are beneficial to many companies. The u of third party logistics provides a competitive advantage in today’s business world. The optimal solution for a company choosing a third party logistic provider would be a five-step process.
Introduction
The intention of the rearch is to identify the most effective ways of choosing a third party logistics (TPL) provider. Logistics management consists of three core functions: transportation management, inventory management,and value added rvices. Third party logistics is defined as when a third party is brought in to help manage the functions. A TP
L provider is an independent economic entity that creates value for its client. A trucking company, a warehou operator, and a contract manufacturer can all be considered third parties. The TPL industry is constantly changing, although its existence is nothing new. The range of value propositions they offer today has changed dramatically in recent years. Global industry consolidation, technology integration, industry specialisation, and industry alliance networks have driven this change.
TPL integrates experti in transportation management, inventory management, and value added rvices. State of the art technology is a part of each of the functions. TPL create reliable distribution channels and thorough controls. TPL are highly efficient, and tap into highly specialid capabilities and functions that increa value for any company. TPL provide warehou management, consolidate shipments, lect carriers, provide logistics information systems and provide fleet management and operations.TPL also negotiate rates, manage product returns, help with product asmbly and installation and provide order fulfilment, as well as replenish inventory. TPL have a significant impact on not only the past and prent but also the future. TPL provide a wide range of benefits de
pending on the needs of the company. The advantages include lower costs, improved experti, market knowledge, and data access. TPL also improves operational efficiency,customer rvice, provides an ability to focus on core business objectives,and provides greater flexibility. Today, more than ever it is esntial for a company to create a competitive advantage either locally or globally.A successful third party arrangement consists of good communication, a commitment from both parties to succeed, a reward structure for the third party and a corporate chemistry. Corporate chemistry refers to two parties sharing common business beliefs and practices. Productive TPL requires good relationships between a company and its TPL providers. This relation-ship requires ongoing maintenance. A company can expect cost savings,productivity improvements, hassle free operation, and measurable rvice
深情往事TPL can be implemented and uful in nearly every industry, whether it is retail, rvice, manufacturing, etc. It is also possible for a company to u more than one TPL provider. TPL differs from industry to industry. Therefore, each industry has to look at its specific needs when choosing a TPL provider. The focus of the prent article is on identifying the 圆生菜怎么做好吃
steps involved in choosing a good TPL provider, and the steps will be mostly related to the retail and rvice industries. Every industry has its own unique needs and so it is important that the TPL provider is right for the particular company.This rearch shows that TPL can be very effective if the proper tools are ud in implementing one.
睡前听故事Background一般造句
Logistics is the process of strategically managing movement and storage of material or products and related information from any point in the manufacturing process through consumer fulfilment. Many articles and abstracts focus on how TPL are being ud more often. TPL has become a more popular technique for managing transportation, warehou and inventory management. TPL are often en as providers of the integrated supply chain, which us many value-added rvices to work with the customer. The market for TPL rvices is growing by 18 to 22 per cent a year.
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TPL originally began as public warehousing during the 1970’s. Managers of warehous began lling space to business in the area that had run out of space or were in need o
f additional space during the busy asons. During the 1980’s TPL expanded into lling not only space but also offering throughput to physical distribution managers who wanted to improve customer rvice with their current customers. By the 1990’s TPL saw the con- solidation of both warehousing and transportation organisations to offer logistics support to logistics vice presidents who saw an opportunity to reduce costs and through value-added rvices provide higher levels of customer satisfaction via third party logistics (Tompkins 1999). There has also Volume 26 Number 7 2003 been another direction added to TPL in the 1990’s, which is a warehou management system. Warehou management systems are often in the form of order entry. Now as we move into the 21 century, we are eing even more change in the rvice offering of TPL. Urs continue to rely most heavily on third parties for warehousing management (56 per cent), transportation rvices (49 per cent), and shipment consolidation (43 per cent).U of TPL for the “traditional” logistics functions has remained relatively stable in recent years, but the u of third parties for a number of manufacturing related functions has generally declined
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Most TPL facilities have brought together materials handling equipment and systems to be able to handle many operational goods such as high throughput, picking efficiency, rapid order processing, efficient u of space and efficient processing of value-added rvices. The goal of TPL providers is to customi operations to supplement their transport and warehousing rvices. TPL often us the customid activities as entry into the distribution channel. By operating warehous and transportation systems for manufacturers, third party logistics have carved out a position in distribution channel operations (Van Hoek 2000). Customisation may be ud to
著名的童话故事increa turnover in a higher-margin area of the supply chain. By offering supplementary rvices, TPL can penetrate gments of the supply chain with higher-value added operations, such as final manufacturing, than the commonly offered transport and warehousing bad rvices.There are many benefits to using TPL They offer experti and cost advantages to the company. Some of the benefits include reduced need for personnel, reduced transportation and distribution cost, improved customer rvice, improved cycle time and freed up capital in manufacturers and mar-
