I. Executive Summary
A third-party logistics provider (abbreviated 3PL, or sometimes TPL) is a firm that provides service to its customers of outsourced (or “third party”) logistics services for part, or all of their supply chain management functions. Third party logistics providers typically specialize in integrated operation, warehousing and transportation services that can be scaled and customized to customers’ needs based on market conditions and the demands and delivery service requirements for their products and materials.
3PL is defined as “a firm that provides multiple logistics services for use by customers. Preferably, these services are integrated, or bundled together, by the provider. Among the services 3PLs provide are transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding.“
Metro Combined Logistics Solutions Inc. is a third party provider of several companies here in the Philippines; one of them is the Johnson and Johnson Philippines Inc. Metro Combined is the third party provider for the management of the raw and packaging materials warehouse for the said company.
Our group had our internship in the said warehouse wherein we were assigned to do several warehousing tasks. We were under the supervision of Mr. Engelbert Ranjo, the Assistant General Manager for Metro Combined and Operations Manager for the Johnson and Johnson account.
During our internship we have observed that Johnson and Johnson is incurring a lot of cost due to having a lot of third party providers for each of their processes. The raw and packaging materials warehouse is handled by Metro Combined, the manufacturing process is handled by SCC Innovasia, and the finished goods warehouse is handled by Fast Services.
Our proposal is to have a Logistics Park wherein all of the supply chain functions will be located in the same area. In the