...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...
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...NAME: RANJIT KAUR SAHOTA. ROLL NO. : 34. CLASS: TYBMS. SUBJECT: LOGISTICS MANAGEMENT. TOPIC: COMPANY- 3PL MAHINDRA LOGISTICS LTD. PROFESSOR IN CHARGE: POONAM MIRWANI. SUBMISSION DATE: 17TH OCTOBER 2013. INDEX Sr No. | Particulars | Page No. | 1 | Introduction | 3-4 | 2 | Definition of 3PL | 4-5 | 3 | History of the Company | 6-10 | 4 | Awards Received | 11 | 5 | SCM At Mahindra Logistics | 11-14 | 6 | Mahindra Logistics on the Road to Success | 14-16 | 7 | About Mahindra Group | 17-22 | 8 | Quick Facts | 23 | 9 | Top 5 Critical Success Factors | 23 | 10 | 3PL Data Structure | 24 | 11 | About CEO And Interview of Pirojshaw Sarkari | 25-35 | 12 | Benefits of 3PL Companies | 36 | 13 | 5 Reasons to use a 3PL Provider | 36 | 14 | Types of 3PL providers | 37 | 15 | Examples of Types of 3PL’s | 38 | 16 | Biblography | 39 | INTRODUCTION: For people new to the supply chain management and logistics industry, the term “3PL” is likely an unfamiliar term. This is certainly not surprising as every industry always has their own set of acronyms and buzz words, but I’d like to provide some clarity to the commonly asked question, What is a 3pl? 3PL Warehouse Facility, photo by Joe Goldberg A couple years ago I put together a list to provide a3PL definition but truly understanding what a 3PL company is and the services they provide really deserves a more in depth explanation. While it isn’t immediately clear exactly who coined the term...
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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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...Current Practice FAILED PARTNERSHIPS (Page 4) Member Imperative PUTTING THE PIECES TOGETHER Companies gain more from outsourcing all supply chain functions 25 Average Annual Savings(%) 20 15 10 5 0 Inventory Management Freight Payments and Auditing All Supply Chain Functions Year 1 Years 2, 3 &4 (Page 5) Outsourcing logistics functions to 3PLs has been a source of competitive advantage for most companies. Most companies cite greater flexibility, operational efficiency, improved customer service levels, and a better focus on their core businesses as part of the advantages of engaging the services of 3PLs. SELECTING A 3PL PROVIDER (Page 7) Source: Journal of Business Logistics (January 1999) HANDLING THE INTEGRATION PROCESS (Page 9) Executive Summary MANAGING THE RELATIONSHIP (Page 11) Appendices DO YOU NEED TO CONSIDER PARTNERING WITH A 3PL? SOME PERFORMANCE METRICS FOR ASSESSING A 3PL(Pages 13) TEN STEPS TO OUTSOURCING SUCCESS PROFITABLE LIAISONS The Dilemma in Brief The advantages of streamlined and efficiently run supply chains compel many companies to outsource some or all of their logistics functions to third party logistics providers (3PLs). Making the switch to a 3PL presents some unique challenges to a company. The time and effort involved and the failure of some 3PL relationships lead some critics to question the worth of the arrangement. Experts indicate that careful 3PL selection, creating service and support structures, setting clear performance...
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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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...SERVICESHELPThe 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...
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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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...vehicles to ensure service quality for all parties involved. Due to the high costs of information technology systems and the lack of expertise among users (employees), the adoption of IT among logistics firms remains relatively low. In 3PL firms IT plays an essential role in synchronizing and coordinating complex supply chain activities. IT has the overall potential to provide better performance for all entities involved. The adoption and successful implementation of IT is a prerequisite for logistics success that provides better communication and tracking. Many organisations depend on their transportation providers for IT support. But statistics have shown that less than one-third provides the technology initiatives. According to Gunasekaran and Ngai (2004), organisations are attempting to find ways to improve their responsiveness and flexibility and in turn competitiveness by changing their technologies which includes the implementation of information systems. The tracking of consignments is an important element and an essential step towards customer service quality in the transportation industry. An IT system is an important feature that can be characterized by reliability - the system can communicate the location of the consignment. It also gives the logistics manager the ability to control and monitor the delivery of the consignment of goods. Vaidyanathan (2005) believes that 3PL providers with advanced IT are expected to lower logistics costs and integrate the supply chain...
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...International Markets-Customer service and customer satisfaction are the backbone of customer relationships. If an organisation can accurately monitor and measure customer service factors and customer satisfaction, it is easier to make appropriate corrections and ensure customer retention, good client references and new customer acquisition. POS (Point Of Sale)-Point of Sale is a place where actual sale of goods or services occurs. It often refers to the physical cash transfer that takes place between the customer and the seller or the service provider. Third Party Logistics & Connectivity-Third Party Logistics also sometimes known as 3PL or TPL that has grown not only in India but as well as in other countries around the world is a type of 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...
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...Questions 1. What was the rationale behind the original distribution setup? The company’s focus on creativity, innovation and superior quality had, over time, created high complexity in the supply chain. LEGO’s motto – “Only the best is good enough” – had contributed to an emphasis on creating, selling and delivering toys at any cost, without regard for practicalities. Lego tried to establish itself as a just-in-time delivery company, but at a cost to itself. It accepted customer orders with immediate or next day delivery. Of these orders, 67% were for less than a full carton and only 62% could actually be delivered “on time”. to be close to the customer, LEGO used four regional DCs: two in France, operated by a third-party logistics provider and serving primarily the UK and southern European markets; one in Germany for the Central and East European markets; and one in Denmark for Scandinavia and the Benelux. The last two, also the largest, were operated by LEGO and employed just over 200 people. Almost 14,000 customers received direct deliveries from these four DCs. What are the advantages of a fully integrated centralized distribution in an Eastern European location? Proximity. A location in Eastern Europe allowed being close (16 to 18 hours’ drive) to LEGO’S main production facilities and largest single markets, Germany and the UK. For Moller Nielsen, the focus was on distribution to customers in Europe and Asia. Cost savings. A fully integrated centralized...
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...ANALYSIS OF LOGISTICS INDUSTRY : ANALYSIS OF LOGISTICS INDUSTRY By:- Group No. 7 Prijo Mathew Sivaramakrishnan Suvrata Nandy Gaurav Verma Dhinesh Kumar Objectives: Objectives To study in detail about the Global Logistics Industry To study in detail about the Indian Logistics Industry To find out the areas where Logistics Industry in India is lacking To compare the Global Companies (UPS, FedEx and DHL) with the Indian Logistics Companies ( Gati , DTDC and First Flight) INTRODUCTION: INTRODUCTION What is Logistics? Management of flow of goods and services Integration of information, transportation, inventory etc Reduces operational cost, improve delivery performance and enhance customer satisfaction The importance of logistics is growing and now the logistics industry has become highly recognized in the global scenario Evolution of Logistics Industry: Evolution of Logistics Industry Global Scenario of Logistics Industry: Global Scenario of Logistics Industry Size of the Global Logistics Industry Annual logistics cost of the world is USD 3.5 trillion The annual logistics cost in any country varies in between 9% to 20% of their GDP Logistics market in US is 10% of its annual logistics cost Global Logistics industry is estimated to be worth USD 300 billion Largest service providers are located in Europe Biggest market - US Current Status and Dynamics of the Industry: Current Status and Dynamics of the Industry Issues – Pricing pressures, high cost of operations, low...
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...The Current Status and Future Prospects of the Third Party Logistics Industry in North America: The 2015 3PL CEO Survey Dr. Robert C. Lieb Professor of Supply Chain Management D’Amore-McKim School of Business Northeastern University Boston, MA Dr. Kristin J. Lieb Associate Professor of Marketing Communications Emerson College Boston, MA January 2016 The Current Status and Future Prospects of the Third Party Logistics Industry in North America: The 2015 3PL CEO Survey This paper is based upon a 2015 survey of the CEOs of 15 of the largest thirdparty logistics companies serving the North American marketplace. The survey was the 22nd iteration of this annual study, and it addressed such topics as the major dynamics driving change in that marketplace and the opportunities and problems facing 3PLs in that region. It also focused on such issues as the recent wave of largescale mergers and acquisitions in the 3PL industry, shipper and 3PL problems related to labor problems at West Coast ports, E-commerce marketplace dynamics and their impact on 3PLs, Amazon’s continued expansion into logistics services and the possibility of Uber offering 3PL-like services. The CEOs also provided one-and three-year forecasts of company and regional 3PL industry revenue growth, while identifying the major changes they believed would occur in the regional 3PL industry during the next year. The implications...
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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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...and access to new markets Expansion of product offerings Increased economies of scale Higher than average growth and return on investment High profile 3PL's which have merged or been acquired in recent years include: • • • • • • • Exel (by Deutsche Post) P&O Nedloyd (by Maersk Logistics) BAX Global (by Schenker AG) GeoLogistics (by PWC Logistics) CCW Group (by Schenker AG) FMI Inc. (by American Capital Strategies/KRG Capital Partners) Hay's Logistics (by Platinum Equity) Potential Pitfalls M&A's are not without pitfalls however. Most surveys conclude that the majority of major M&A's fail to meet the expectations of the acquiring company's Board of Directors, including growth, market share, and shareholder value.4 The reasons for these failures are many, including: • • • • The majority of 3PL M&A's are performed among competitors or companies operating in the logistics industry. However, an increasing amount is also performed by private investment firms as well. This 3PL M&A trend is not expected to change, as the conditions that make 3PL's attractive targets continue. TNT NV, one of the world's largest 3PL's, announced late last year of its intention to sell portions of its logistics subsidiary in order to strengthen its global delivery business and better compete with FedEx, UPS and DHL. China's $12 billion 3PL Sector, with annual growth rates of over 25%, is expected experience many M&A's in the coming years as a result of China's WTO accession and their subsequent...
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