Essay About Effective Third Party Logistics Provider And Third Party Logistics

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The purpose of this article was to identify the steps that need to be taken
when choosing an effective third party logistics provider. Based on the research
completed, it was determined that third party logistics are beneficial
to many companies. The use of third party logistics provides a competitive
advantage in todays business world. The optimal solution for a company
choosing a third party logistic provider would be a five-step process.
The intention of the research is to identify the most effective ways of choosing
a third party logistics (TPL) provider. Logistics management consists of
three core functions: transportation management, inventory management,
and value added services. Third party logistics is defined as when a third
party is brought in to help manage these functions. A TPL provider is an independent
economic entity that creates value for its client. A trucking company,
a warehouse operator, and a contract manufacturer can all be
considered third parties. The TPL industry is constantly changing, although
its existence is nothing new. The range of value propositions they offer today
has changed dramatically in recent years. Global industry consolidation,
technology integration, industry specialisation, and industry alliance
networks have driven this change.
TPL integrates expertise in transportation management, inventory management,
and value added services. State of the art technology is a part of
each of these functions. TPL create reliable distribution channels and thorough
controls. TPL are highly efficient, and tap into highly specialised capabilities
and functions that increase value for any company. TPL provide
warehouse management, consolidate shipments, select carriers, provide logistics
information systems and provide fleet management and operations.
TPL also negotiate rates, manage product returns, help with product assembly
and installation and provide order fulfilment, as well as replenish inventory.