relationship-scm.pdf - Supply Chain Relationships SCM-I Introduction \u2022 Logistics is basically the concept of how to deal with the movement and storage

relationship-scm.pdf - Supply Chain Relationships SCM-I...

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Supply Chain Relationships SCM-I
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Introduction Logistics is basically the concept of how to deal with the movement and storage of materials with highest consumer satisfaction Most developed countries, the costs of logisitcs management are steadily growing Logistics costs have become an important part of the value of products Logistics management is regarded as an important role in the international competitive market
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Introduction Logistics outsourcing is one of the issues that a firm has to consider about the efficiency and benefit outsourcing brings to the company The decision to outsource logistics activities are use of other companies to handle logistics affairs such as transportation and warehousing The role of logistics providers is changing both in content and in complexity and brings about the development of new logistics providers who offer various services to their customers Logistics outsourcing is not a new trend.
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History of Outsourcing In the 1950s and 1960s, transportation and warehousing were commonly outsourced. By the 1970s, as companies began to emphasize cost reduction and improved productivity, they started to look for multicompetency providers for outsourcing. In the early 1980s, companies began to emphasize supply chain optimization, but it was mostly restricted to isolated operations within their own organizations. In the 1990s, by the advent of Internet and the emergence of global sourcing, logistics industry introduced a new generation of LSPs.
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Types of Logistics Parties
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3PLs Third-party logistics are activities carried out by a logistics service provider performing at least management and execution of transportation and warehousing. Logistics outsourcing, logistics alliances, third-party logistics, contract logistics, and contract distribution have been used to describe the same meaning . Other activities like inventory management, information related activities, value added activities, or supply chain management can be managed by the logistics service provider. The length of the cooperation should be at least one year.
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3PLs The total logistics market in 2013 in the United States was $910 billion and the 3PL market was around $65 billion. A survey of 221 US companies reported that 78% of them are using 3PLs for logistics services and spending 49% of their logistics expenditure on outsourcing. The 3PL business is developing as a result of the increasing demand of advanced logistics services, including globalization, lead-time reductions, customer orientation, and outsourcing.
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Activities of 3PLs transportation warehousing freight consolidation and distribution product marking labeling and packaging inventory management carrier selection
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