...1PL: First Party Logistics * First party logistics accounts for the two parties benefiting from the transaction, but mainly the vendor/supplier. * A First party logistics provider is specifically the consignor of goods, the transaction party that has organized transport to the receivers chosen destination. 2PL: Second Party Logistics * Second party logistics involve specifically the carriers of goods for the transaction, which can be rail, road, sea and/or air. * A second party logistic provider specialise in the transport area of the supply chain, getting goods from one point to another. They can be an asset-based carrier and own the means of transportation, for example shipping lines which charter or lease their own ships, or airlines that are contracted to use their passenger flights to transport air freight from origin A to destination B. 3PL: Third Party Logistics * Third Party Logistics still primarily concerns goods transportation from a supplier/consigner to a buyer/consignee, but includes additional services involved in the supply chain. These services can include warehousing, terminal operations, customs brokerage, supply chain management, IT analysis and track and trace. * A 3PL logistics provider supplies all or some of these services and manages the obligations of each party from goods departure to destination. For example, BCR is a 3PL service provider specialising in freight forwarding and customs brokerage, but also provides e-fulfilment...
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...market. Major foreign players include Toyota, Hyundai, General Motors and Volkswagen Group. Major automotive hubs in India are Chennai, NCR and Pune. As the operations of automotive industry are increasing rapidly in terms of volume and complexity, companies in India need to follow global standards and best practices for achieving optimization of their supply chain. One of the practices, which are followed by leading companies, is fourth party logistics (4PL) company, or a lead logistics provider (LLP) Need for 4PL 1) Concept Definition: Lead Logistics provider or 4PL 4PL is term introduced by Accenture in 1996.It describes 4PL as an "integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design supply chain solutions". 4PL i.e fourth party logistics provider is a company which re-designs a manufacturer’s or retailer’s supply chain; implements the solution and then manages the logistics companies required as part of the overall solution. 4PL provider is also referred as Lead Logistics provider(LLP) which manages a range of other 3PLs on behalf of a manufacturer or retailer as part of an overall supply chain solution[1]. 4PL concept of a (Source: Allyin International 'www.allynintl.com') 4 So in short, 4PL is an...
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...SAMPLE CASE STUDIES – OPERATIONS Case Study 1 Make Versus Buy Case ABC Ltd. is a manufacturing company engaged in the manufacturing of valves. They have been in the business for last 3 years and have been manufacturing only one type of valves. They started their business initially with sales of 10,000 valves per month and now they have grown the volume to about 50,000 valves per month. They have been buying all the raw material for the valve and were doing all the manufacturing in house. Now they have established themselves in the market and are planning to expand and produce different varieties of valves. They have their plant in the main city and the total area of the plant is 50,000 sq. ft. Now if they want to expand and continue doing all the activities of manufacturing of all the varieties in house, they would need another 50,000 sq.ft. of the area. In the recent times, the land prices in the area have more than doubled in the last 3 years and still land is available with great difficulty. Mr. Mohan is the production head of ABC Ltd. and has been successful with the production and the level is continuously increasing. But in recent times, he is facing the problem of quality complaints which have gone up from average 0.2 % in previous 2 years to 0.5 % this year. Also, he is finding that there is a high level of dissatisfaction among the workers regarding workload as well as salary levels. The workers are regularly complaining about the over work. Although...
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...Module: Logistics & Operations Management Student: szjlcklxjvl Date: Wednesday zncxz ,n Subject: Business Management Year 2 (Advanced Course) 1. Assignment Task 1.1. Individual Report 1.1.1. To complete this assignment ● Select any organisation of your choice. ● Identify component activities - Component activities are activities related to the core activities of the organisation of your choice. How the components are used to achieve the overall objectives / goal of the organisation. So a component might be IT department, HR department and so on. ● Then evaluate the performance objectives used by each. List the performance objectives and highlight the deferent ways it interlink with each other to accomplish a goal. ● Critically examine - Examine both internal and external factors influencing the Organisation performance objectives in relation the Organisational goals. ● Suggest ways in which the performance could be improved. With the above research and evaluation you should be able to recommend a better way forward. 2. Logistic Operations of Sainsbury & Tesco 2.1. Introduction To survive in the global market you need to adopt proper strategies and theories properly and effectively to ensure success. Global market is a competitive market where you cannot strive forward if you don't have proper planning and strategies. Logistics is an important factor in business which is all about flow of goods information and...
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...3PL * Third party logistics refers to outsourced tasks for businesses which help them manage their supply chain, such as warehousing, picking, packing, shipping and inventory management. Some 3PLs might also help with the administrative side of these tasks, such as invoicing and accounts receivable. 4PL * Fourth party logistics companies serve as consultants who manage the relationship between the principal company and one or more 3PLs to make sure all operations are running smoothly. They can carry various levels of responsibility, from advice on choosing the best companies, right up to the day-to-day management of essential logistical tasks being performed for the principal company. Similarities * Both 3PLs and 4PLs offer outsourcing services and expertise that companies may not be able to afford or wish to organize in-house. Both types of companies can help even a small enterprise grow and expand without overextending themselves. Differences * A 3PL is a single company that might provide a variety of services for the principal company. They usually provide their services to a variety of companies. A 4PL works for many companies to help them manage one or more 3PLs to ensure they are getting good service and operations are running smoothly. The LP stands for Party Logistics and number 3 is the first course determined as a business model and number 4 is the improvement on it Basically 3PL is outsourcing Basically 3PL is outsourcing You have a company...
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...4PL logistics providers — Scaling up supply-chain efficiency |About 75 per cent of the Fortune 100 companies and about 45 per cent of Fortune 500 companies have now gone in for 4PLs. | The term "4PL" was actually coined by the consulting group Accenture. In fact, they also hold the trademark to the name 4PL. Accenture defines a 4PL in the following manner: "A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions." The transport sector in India: Manufacturers do not seem to pay much attention to their transportation needs, relying on the conventional way of calling up truck operators and getting the best rate. Thus, the firms end up paying a lot of money on transportation simply because of poor planning on distribution. However, things are changing with the entry of foreign companies that, usually, have strong logistics support. This and the increasing realisation of the importance of timely delivery of materials and products are slowly changing the way companies are looking at logistics. In this context outsourcing of logistics makes a lot of sense for Indian firms not many of which have a professionally run logistics division, feel logistics experts. This will free companies from the worry of getting materials on time or distributing their products within and outside the country. According to global consultancy...
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...4PL logistics providers — Scaling up supply-chain efficiency |About 75 per cent of the Fortune 100 companies and about 45 per cent of Fortune 500 companies have now gone in for 4PLs. | The term "4PL" was actually coined by the consulting group Accenture. In fact, they also hold the trademark to the name 4PL. Accenture defines a 4PL in the following manner: "A 4PL is an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions." The transport sector in India: Manufacturers do not seem to pay much attention to their transportation needs, relying on the conventional way of calling up truck operators and getting the best rate. Thus, the firms end up paying a lot of money on transportation simply because of poor planning on distribution. However, things are changing with the entry of foreign companies that, usually, have strong logistics support. This and the increasing realisation of the importance of timely delivery of materials and products are slowly changing the way companies are looking at logistics. In this context outsourcing of logistics makes a lot of sense for Indian firms not many of which have a professionally run logistics division, feel logistics experts. This will free companies from the worry of getting materials on time or distributing their products within and outside the country. According to global consultancy...
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...use of third-party logistics services by large American manufacturers: the 2004 survey. Ads by Google Control N losses NBPT reduce nitrogen losses Best urease inhibitor. www.finechem.net.cn Riversand MDM Multi-entity Master Data Mgmt. Global, enterprise-class solutions www.riversand.com HP Patent Sales Hewlett-Packard Patent Auctions All Buyers and Brokers Welcome www.hp.com/go/patentsales GlobalSources.com Manufacturers & Wholesale Suppliers From China And Other Countries! www.GlobalSources.comSubject:Outsourcing (Influence) Radio frequency identification (RFID) (Usage) Logistics services (Surveys) Logistics services (Outsourcing) Logistics services (Technology application)Authors:Lieb, Robert Bentz, Brooks A.Pub Date:03/22/2005Publication:Name: Transportation Journal Publisher: American Society of Transportation and Logistics, Inc. Audience: Academic; Trade Format: Newsletter Subject: Business; Transportation industry Copyright: COPYRIGHT 2005 American Society of Transportation and Logistics, Inc. ISSN: 0041-1612Issue:Date: Spring, 2005 Source Volume: 44 Source Issue: 2Topic:Event Code: 480 Use of services Computer Subject: Outsourcing; Radio frequency identification; Technology applicationProduct:Product Code: 3662594 Radio Frequency Detector Eqp; 7392710 Logistic Services NAICS Code: 334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing; 541614 Process, Physical Distribution, and Logistics Consulting Services...
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...United Parcel Service: Moving at the Speed of Business 1. What is UPS's business model? Does it move at the "speed of business"? Explain. 2. Who is UPS's target market? What service(s) is UPS providing? 3. Who are UPS's competitors? What are the limits of their business models? UPS has been rated "America's most admired mail, package and freight delivery company" for sixteen consecutive years by surveys conducted by Fortune magazine, and in 1998 was named "world's most admired" in the same category. United Parcel Service (UPS) is one of America's ten largest airlines. It is the largest private user of cellular technology on earth. Its drivers' handheld computers make a million wireless calls a day. UPS also handles about six percent of the nation's daily gross domestic product. The $24 billion company (see Table 1 for historical financial data) has 330,000 employees, delivering 12 million packages a day to seven million customers. Company revenues for the quarter ending March 31, 1999, totaled $6.33 billion, up 8% compared to the $5.86 billion reported for the same period in 1998. Net income for the 1st quarter rose to $499 million compared to the $352 million reported for the same period in 1998, a 42% jump. As the world's largest package distribution company, UPS transports more than 3 billion parcels and documents annually (See Table 2 for industry data). UPS operates more than 500 aircraft, 157,000 vehicles and 2,400 package and sorting centers to provide service...
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...United Parcel Service: Moving at the Speed of Business 1. What is UPS's business model? Does it move at the "speed of business"? Explain. 2. Who is UPS's target market? What service(s) is UPS providing? 3. Who are UPS's competitors? What are the limits of their business models? UPS has been rated "America's most admired mail, package and freight delivery company" for sixteen consecutive years by surveys conducted by Fortune magazine, and in 1998 was named "world's most admired" in the same category. United Parcel Service (UPS) is one of America's ten largest airlines. It is the largest private user of cellular technology on earth. Its drivers' handheld computers make a million wireless calls a day. UPS also handles about six percent of the nation's daily gross domestic product. The $24 billion company (see Table 1 for historical financial data) has 330,000 employees, delivering 12 million packages a day to seven million customers. Company revenues for the quarter ending March 31, 1999, totaled $6.33 billion, up 8% compared to the $5.86 billion reported for the same period in 1998. Net income for the 1st quarter rose to $499 million compared to the $352 million reported for the same period in 1998, a 42% jump. As the world's largest package distribution company, UPS transports more than 3 billion parcels and documents annually (See Table 2 for industry data). UPS operates more than 500 aircraft, 157,000 vehicles and 2,400 package and sorting centers to provide service in more...
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...United Parcel Service: Moving at the Speed of Business 1. What is UPS's business model? Does it move at the "speed of business"? Explain. 2. Who is UPS's target market? What service(s) is UPS providing? 3. Who are UPS's competitors? What are the limits of their business models? UPS has been rated "America's most admired mail, package and freight delivery company" for sixteen consecutive years by surveys conducted by Fortune magazine, and in 1998 was named "world's most admired" in the same category. United Parcel Service (UPS) is one of America's ten largest airlines. It is the largest private user of cellular technology on earth. Its drivers' handheld computers make a million wireless calls a day. UPS also handles about six percent of the nation's daily gross domestic product. The $24 billion company (see Table 1 for historical financial data) has 330,000 employees, delivering 12 million packages a day to seven million customers. Company revenues for the quarter ending March 31, 1999, totaled $6.33 billion, up 8% compared to the $5.86 billion reported for the same period in 1998. Net income for the 1st quarter rose to $499 million compared to the $352 million reported for the same period in 1998, a 42% jump. As the world's largest package distribution company, UPS transports more than 3 billion parcels and documents annually (See Table 2 for industry data). UPS operates more than 500 aircraft, 157,000 vehicles and 2,400 package and sorting centers to provide service...
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...Communication Technology Steve Lopez BUS 600: Management Communications with Technology Tools Prof. James Worsley August 6, 2012 Communication Technology Communication and technology have evolved over the years and at a rapid pace. With these tools together, they have shaped industries and grew businesses exponentially. Many years ago, man had to use smoke from fire to communicate over long distances. With the new inventions and new technologies for communication, the business world shrunk the globe. Baack (2012) defines communication as, “transmitting, receiving, and processing information.” The organization that does these three things the quickest gives them an advantage on their competition. An organization needs to enhance its performance by first understanding the correct communication technology for them. The organization needs to be able to deliver communications that are timely, accurate, effective, and efficient. “These various modes of communication may be used to disseminate official information between employees and management, to exchange hearsay and rumors, or anything in between” (Reference for Business). Organizations need to understand what communication tools will best fit their organization. Defining the objectives of the organizations communication needs along with the costs is beneficial to the right communication tools needed for that specific organization. Table 1.1 shows the...
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...inventory, plus a large direct sales force in more than 170 countries and an unpredictable sales cycle, effective supply chain management is critical for continued growth. Whirlpool has not always considered logistics a competitive advantage. However, since naming Penske as lead logistics supplier, Whirlpool experienced cost savings, increased customer satisfaction and found a partner to help integrate the recent acquisition of Maytag. Whirlpool as its single logistics provider for the Quality Express network. Penske was responsible for the logistics of the entire network, including managing the relationship of the two regions it subcontracted. This Penske-Whirlpool partnership replaced Whirlpool’s previous logistics solution, comprised of two incumbent third-party logistics providers. The partnership accomplished Whirlpool’s early logistics objectives, most notably, to establish effective processes and procedures, allow for more visibility of the company’s distribution network and reduce supply chain costs. Recently, Whirlpool’s management took a more customer-centric approach to analyzing its supply chain and began benchmarking its supply chain against other companies to identify “best in class” practices. This exercise prompted Whirlpool to question whether having a single logistics provider was the best structure to exceed customer expectations and maximize cost savings. At the...
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...expand in diversity when they made the decision to include third-party logistics services. All of Genco’s expansions eventually spurred their entrance into a major new service area that is known today as reverse logistics. They developed software and expanded its services to help companies manage and maximize the value of their returned products. Reverse logistics deals with reusing, repairing, and recycling products to satisfy organizational goals. The origins of reverse logistics began in such ways as patching clothes to make them last longer or placing kitchen scraps in a compost bin. The goal is to process goods that are moving up the reverse supply chain in a manner that creates new uses, or safe disposal, while retaining as much value as possible. Formally, it is the process of receiving returned goods or goods that have reached their useful life and attempting to recapture value or properly disposing of them. It includes the handling of product recalls, end-of-life returns, and seasonal returns and parts so that they do not simply get dumped into a landfill. After products move through the reverse logistics system, they can eventually be returned to stock, returned to the original manufacturer, sold in a secondary market, or repaired and reshipped to the original customer. Returns have become an increasingly important consideration for retailers, demanding that they either come up with a reverse logistics system or buy it from somewhere else. Today, it is essential for...
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...1. Introduction 1.1 About the company HAVI Logistics understands itself as a Lead Logistics Provider for the food service industry. Nearly 6000 employees across Europe are providing sophisticated and benefitable logistic solutions for restaurant chains, catering services and gas station stores. Since its founding in November 1981, HAVI Logistics has provided its clients with all-time carefree distribution services of all food and non-food articles in three temperature classes - deep frozen, cooled and dry - and delivered them to 8,641 locations. HAVI runs 55 distribution centers all across continental Europe. A good 74 m units sold are yearly moved by seven distribution centers in Germany alone, with a vehicle fleet of 769 lorries, earning HAVI Logistics € 4.4 bn in sales. (Havi Logistics,[03/10/2013]) HAVI Logistics clients benefit from the “One-Stop-Shopping”-distribution system with its individual infrastructure: one order, one delivery, one invoice. The Lead Logistics Provider thus takes over more control of the entire logistic chain than the mere physical movement of goods providing the highest standards in delivery and food safety. As a logistic partner, HAVI is completely integrated into the client’s business model. Hence, the client can fully focus on its core operations, while HAVI Logistics takes care of all logistic processes, from acquisition and purchase-price optimation all the way to distribution and storage...
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