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Party Logistics:
3PLs, 4PLs & 5PLs
nooshin
Dr.Reza Zanjirani Farahani
Presented by:
Shabnam HajiRamezan Alagheh Band
Nooshin Vaghefi
85125078
85125053
Outline
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May-07
Outline
Section
Section II
Section
Section II
II
Section
Section III
III
Section
Section IV
IV
Section
Section V
V
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What is 3PL?
First party: shipper or supplier
Second party: buyer
Third party: a firm acting as a middleman
A logistics triad is a: three-way relationship between a buyer
of goods, the supplier of those goods and a logistics service
provider moving and/or storing goods between buyer and
supplier.[1]
3PL means outsourcing logistics activities including
transportation and warehousing to outside firms.[4]
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What is 3PL?
Third-party Logistics is the use of an outside
company to perform all or part of the firms
materials management and product distribution
function. [1]
3PL provider is an external provider who
manages, controls, and delivers logistics
activities on behalf of a shipper.[3]
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What is 3PL?
A long-term formal or informal relationship
between a shipper and a logistics provider to
render all or a considerable number of logistics
activities for the shipper.[5]
Activities carried out by a logistics service
provider on behalf of a shipper and consisting of
at least management and execution of
transportation and warehousing.[5]
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Transporting
Warehousing
Inventory Control
Value-added services
Information and design service
Reengineering of the chain
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Levels of Outsourcing[2]
Transactional Outsourcing
Tactical Outsourcing
Strategic Outsourcing
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[6]
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Information
Technology
Managing
third-party
Logistics
Transportation
(shipping)
Capacity
Planning
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Function
Activities
Technologies
Strategic
Planning
Corporate/business strategy,
development, resource
management, market
segment analysis
Groupware, shared
information such as
WWW, EDI, ERP,
internet
Inventory
Management
Forecasting, location
analysis, order management
MRP, EDI,ERP,
WWW, online
purchasing
Transportation
Planning
Groupware, Internet,
Intranet, linear
programming
Capacity
Planning
Linear programming,
MRP,ERP
Information
Management
EDI, e-commerce,
Internet, expert system,
ERP
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[6]
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[25]
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Disadvantages
Searching efforts
Coordination efforts
Information sharing
Loss of control
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21
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[3]
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[3]
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Second Generation
(1990 2000)
Transportation / warehousing
First Generation
(1980 - 1990)
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4PL
4PL is an integrator that assembles and manages
the resources, capabilities, and technology of its
own organization with those of complementary
service providers to deliver a comprehensive
supply chain solution.
4PLs manage and direct the activities
of multiple 3PLs, serving as an
integrator.
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4PL
Most 4pl companies have no assets.
They provide services to customers in the form of
responsibility and knowledge of how to fulfill the
customer requirements.
The physical movement of goods is outsourced to
other 3PLs.
The term LSI is used for operators that provide
only administrative services to their customers
such as 4PL, forwarder, web-marketplaces,
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[7]
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5PL [6]
Management of all parties of the supply chain in
conjunction with e-Business.
Using e-logistics network focusing on global
operations.
E-logistics can be defined as the transfer of goods
and service using Internet communication
technologies such as EDI, e-mail,WWW.
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Outline
Section
Section II
Section
Section II
II
Section
Section III
III
Section
Section IV
IV
Section
Section V
V
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Views of Non-Users
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Outline
Section
Section II
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Section II
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Section III
III
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IV
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Section V
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Services: [10]
Global transportation management
Dynamic transportation optimization (in an
operational environment)
Freight audit & payment
Carrier selection analysis
Track & Trace
Documentation and Customs clearance
Transportation strategies assessment
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Services: [11],[12]
Freight Forwarding Services
Logistic Services
Courier Services
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Services: [11],[13]
FedEx Express
FedEx Ground
FedEx Supply Chain Services
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Services: [14]
Packaging
Postponement
Reverse logistics
Multi-client warehouses and distribution centers
Transportation management
Supply chain consulting
Supply chain network analysis and design
Software and technology solutions
Vendor-managed inventory
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Outline
Section
Section II
Section
Section II
II
Section
Section III
III
Section
Section IV
IV
Section
Section V
V
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References
1.Gunnar Stefansson, Collaborative logistics management and the role of third-party
service providers, International Journal of Physical Distribution & Logistics
Management(2006), pp. 76-92
2. www.theabrahamgroup.com
3. Suanne Hertz, Monica Alfredsson, Strategic Development of Third Party Logistics
Providers, Industrial Marketing Management (2003) pp.139-149
4.Toshinori Nemoto, koichiro Tezuka , Advantage of Third Party Logistics in Supply
Chain Management
5. Halldorsson Arni
and Tage Skjott-Larsen (2004), Developing Logistics
Competencies Through Third Party Logistics Relationship, International Journal
of Operation and Production Management ,pp.192-206
6.A.Gunasekaran, (2003) ,The successful management of a small logistics company,
International Journal of Operation and Production Management , pp.825-842
7. Bauknight Dow N. and Miller John R., Fourth Party Logistics: The Evolution of
Supply Chain Outsourcing
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References
8. 2006 Third Party Logistics Results and Findings of the 11th Annual Study, Sited in
www.3plstudy.com
9. 2005 Third Party Logistics Results and Findings of the 11th Annual Study, Sited in
www.3plstudy.com
10. www.baxglobal.com
11. www.wikipedia.org
12. www.dhl.com
13. www.fedex.com
14. www.menloworldwide.com
15. www.tnt.com
16. www.ups.com
17. www.tecsys.com
18. B.S. Sahay and Ramneesh Mohan, (2006), " 3PL Practices: an Indian Perspective",
International Journal of Physical Distribution & Logistics Management Vol. 36 No. 9,
pp. 666-689
19. Mohammed Sadiq Sohail and Obaid Saad Al-Abdali, (2005), "The usage of third party
logistics in Saudi Arabia: Current position and future prospects" , International Journal
of Physical Distribution & Logistics Management Vol. 35 No. 9, pp. 637-653
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References
20. Frazelle. Edward H. , "Supply Chain Strategy: The Logistics of Supply Chain
Management" , McGraw-Hill, 2002
21. Christopher, Martin, "Logistics snd Supply Chain Management: Strategies for Reducing
Cost and Improving Service" Financial Times , 1998
22.www.timesofindia.com
23.Eleonora Bottani and Antonio Rizzi , (2004) A Fuzzy TOPSIS Methodology to Support
Outstanding of Logistics Services, Supply Chain Management: An International
Journal, pp. 294-308
24.Jonah C. Tyana, Fu-Kwun Wangb, Timon C. Duc,(2003) An Evaluation of Freight
Consolidation Policies in Global Third Party Logistics, The International Journal of
Management Science, pp. 55-62
25. Sanjay Jharkhariaa, Ravi Shankarb,, (2007), Selection of Logistics Service Provider: An
Analytic Network Process (ANP) Approach, The International Journal of Management
Science, pp. 274-289
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