Exel plc – SCM at Haus Mart

Exel plc – SCM at Haus Mart - OM517: Case...

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OM517: Case Paper #5 – Exel plc – SCM at Haus Mart Companies outsource to 3PLs certain supply chain activities that they do not consider as a core competency. These activities include global/local transportation, freight forwarding which typically require substantial economies of scale and specific knowledge in SC. A third party logistics provider can increase the supply chain surplus by aggregating capacity, inventory, transportation and information to a higher level and offering lower costs and better quality. 3PLs commonly provide either freight management or contract logistics services. Freight management involves rather upstream portion of the supply chain, which includes global, bulk transportation by air, sea, or land, customs broking, and short-term warehousing services. Economies of scale allows FM companies to negotiate better prices with carriers. Contract logistics, on the other hand, involves downstream, more up- close services such as local transportation, distribution, management of DC operations, and other value-added logistics services. A thorough understanding of the customer’s business
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This note was uploaded on 09/08/2009 for the course OM 522 taught by Professor 123 during the Spring '09 term at Alabama.

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Exel plc – SCM at Haus Mart - OM517: Case...

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