The Impact of Globalisation on Logistic Service Providers
Biographical Note Dr. Seyed-Mahmoud Aghazadeh
is in the Department of Business Administration, School of Business, State University of New York at Fredonia, Fredonia, NY 14063, USA.
How to Choose an Effective Third Party Logistics Provider by Seyed-Mahmoud Aghazadeh Abstract The purpose of this article was to identify the steps that need to be taken when choosing an effective third party logistics provider. Based on the research completed, it was determined that third party logistics are beneficial to many companies. The use 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 research 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 services. Third party logistics is defined as when a third party is brought in to help manage these functions. A TPL provider is an independent economic entity that creates value for its client. A trucking company, a warehouse 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 expertise in transportation management, inventory management, and value added services. State of the art technology is a part of each of these functions. TPL create reliable distribution channels and thorough controls. TPL are highly efficient, and tap into highly specialised capabilities and functions that increase value for any company. TPL provide warehouse management, consolidate
is in the Department of Business Administration, School of Business, State University of New York at Fredonia, Fredonia, NY 14063, USA.
How to Choose an Effective Third Party Logistics Provider by Seyed-Mahmoud Aghazadeh Abstract The purpose of this article was to identify the steps that need to be taken when choosing an effective third party logistics provider. Based on the research completed, it was determined that third party logistics are beneficial to many companies. The use 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 research 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 services. Third party logistics is defined as when a third party is brought in to help manage these functions. A TPL provider is an independent economic entity that creates value for its client. A trucking company, a warehouse 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 expertise in transportation management, inventory management, and value added services. State of the art technology is a part of each of these functions. TPL create reliable distribution channels and thorough controls. TPL are highly efficient, and tap into highly specialised capabilities and functions that increase value for any company. TPL provide warehouse management, consolidate
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