Third Party Logistics Essay

Abstract - Supply chain management has played a significant role in global market. The role of logistics in supply chain management is to provide plenty of significant improvements in industrial development. However, Third-party logistics activities such as transportation, warehousing, material handling and other value-added enable companies to get customized logistical support while manufacturers focus on the core organizational activities to achieve excellence. Third party logistics assists to supply right product in right time with right quantity to right consumers. The objective of this study is to statement the role of third party logistics in supply chain management and to understand the relationship between supply chain management and
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But they are also fraught with risks, which add complexity to supply chains. Supply chain disruptions can move a company from leader to laggard in short order: risks that include volatile energy costs, product quality issues, and even natural disasters. Successful companies develop risk mitigation strategies and use resilience as a competitive advantage. Third-party logistics help companies develop and implement these strategies although the industry is increasingly vital to the domestic and world economies, there is no single, legal definition of TPL, sometimes called logistics outsourcing. Generally speaking, though, TPL is the business of managing various elements of the supply chain via contract or outsourcing. TPL provider manages all or part of a client’s logistical requirements, which may include transportation, inventory optimization, warehousing, order fulfillment, or the integration of these and other
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Third-party &Logistics Definition. According to Council of Logistics Management.
Logistics: is 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 requirements”. Third-party logistics: as “Outsourcing all or much of a company’s logistics operations to a specialized company”. Third-party logistics involves the use of external companies to perform logistics functions that have traditionally been performed within an organization. Third party logistics provider is a firm which provides multiple logistics services for use by customers. Preferably, these services are integrated, or “bundled” together by the provider.
5. Integration between Third party logistics and SCM. Lambert et al. (1998) and Simchi-Levi et al. (2003) state that the goal of SCM is to create value for customers, stakeholders and all supply chain members. According to Council of Supply Chain Management Professionals (2007) integration is about “linking major business functions and business processes.
A. Integration concept Definition as the structured and measured set of activities designed to produce a specific output for a particular customer or