Fedex Supply Chain Management
The case study of 3PL: FedEx Supply Chain Solution
Sharon Kuo Silver Lu RA7951021 RA7951055
Jon Dickerson RA6967118
Content Introduction_3PL Current 3PL market A case: FedEx Supply Chain Solution
Introduction and express service Logistics Distribution Centre Operations Integrated Information Technology
Introduction _3PL
Definition Relationship between a shipper and third party with customized offerings Encompasses a broader number of service functions by a long-term and mutually beneficial relationship. Typically specialize in integrated warehousing and transportation services
(By Alfrick and Calkins, 1994 and P. Murphy and R. Point, 2000).
Main goals of 3PL Improve service levels Reduce costs
Four categories of 3PL provider
High
Service developer
Offers advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system. Focus on IT and Economies of Scale
Customer developer
Highest level of 3PL can attain. It integrates itself with few customer and takes over their entire logistics function with extensive and detailed tasks
Complexity of Service
Standard 3PL provider most basic form of a 3PL provider and performing basic functions like pick and pack, warehousing, and distribution business
Customer adapter
Upon customer’s request and essentially takes over com-plete control of the company’s logistics activities. It Improves the logistics dramatically, but do not develop a new service
Low
Customer Oriented
High
Hertz, S., & Alfredsson, M., (2003), Strategic development of third party logistics providers,
Current 3PL market
The global third-party logistics (3PL) industry is now estimated at $390 billion Shippers are turning to their 3PLs more than ever to stretch operations into unfamiliar regions of the world Healthy market with 7-8% growth and lots of activities in some emerging economies, most in Eastern Europe
A case: FedEx Supply
Sharon Kuo Silver Lu RA7951021 RA7951055
Jon Dickerson RA6967118
Content Introduction_3PL Current 3PL market A case: FedEx Supply Chain Solution
Introduction and express service Logistics Distribution Centre Operations Integrated Information Technology
Introduction _3PL
Definition Relationship between a shipper and third party with customized offerings Encompasses a broader number of service functions by a long-term and mutually beneficial relationship. Typically specialize in integrated warehousing and transportation services
(By Alfrick and Calkins, 1994 and P. Murphy and R. Point, 2000).
Main goals of 3PL Improve service levels Reduce costs
Four categories of 3PL provider
High
Service developer
Offers advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system. Focus on IT and Economies of Scale
Customer developer
Highest level of 3PL can attain. It integrates itself with few customer and takes over their entire logistics function with extensive and detailed tasks
Complexity of Service
Standard 3PL provider most basic form of a 3PL provider and performing basic functions like pick and pack, warehousing, and distribution business
Customer adapter
Upon customer’s request and essentially takes over com-plete control of the company’s logistics activities. It Improves the logistics dramatically, but do not develop a new service
Low
Customer Oriented
High
Hertz, S., & Alfredsson, M., (2003), Strategic development of third party logistics providers,
Current 3PL market
The global third-party logistics (3PL) industry is now estimated at $390 billion Shippers are turning to their 3PLs more than ever to stretch operations into unfamiliar regions of the world Healthy market with 7-8% growth and lots of activities in some emerging economies, most in Eastern Europe
A case: FedEx Supply