a. Demand Chain Management
Understanding demand requires a comprehensive knowledge of your customers, You should know what products / services are demanded by your customers; how do they make their purchases, how often they order & what constraints they face on the purchasing process. Very few companies have mastered this concept. Safe Express was able to know all the above concepts through considerable focus into customer needs & grievances.
b. Achieving Competitiveness in Logistics, Freight, Supply Chain
Reduced lead time, inventories, lower operating costs, product availability & customer satisfaction are the benefits which grow out of effective logistics & supply chain management. The decisions usually carried on by Safe Express (3PL),
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Usually goods being transported are electronics & frozen stocks from warehouse. The relevant focus is on warehouse, transportations services offered. Service is another aspect which focuses the advanced need of the customer, initially with proper timing maintenance, order management. As the consignee is offered service by 3PL like Safe express F&L with favorable order management, & ease of doing business is attained by logistics organization like Safe Express.
f. The Challenge Faced by Organizations
In today’s world, competence is taking on new dimensions. The ability to compete is being determined by the degree of responsiveness to customers & key issues handling. How fast you deliver the goods/ products, what the price paid by customers & what value customer is getting throughout the service is considered in a schematic & ordered way. Markets are quick demanding & customization of each logistics activities is essential for each customer, & has become the essential factor in logistics management.
Safe Express faces lot of ups & downs in each operation & improves operation on each situation while dealing with each customer. Safe Express dominant improvement methods used are-
i.What are the customer
Due to the large quantity of freight and the long distance that it must travel to arrive to its destination exporters and importers alike have found logistic service providers essential to engage in international trade (Rodriguez, Comtois, Slack, 2013). While some Logistics service providers focus only on the area of transportation others specialize in freight consolidation, distribution management, and warehousing (Robinson, 2014). They have enough market knowledge, information and communication systems to offer supply chain solutions tailored to the specific needs of any company be it small or large (Rodriguez, Comtois, Slack,
Review of related literature gives a basis for any research. Unfortunately, there are not much studies conducted in this field of Logistics Management. Following are the available related studies undergone in the area of Logistics Management.
Over time, new healthcare reform measures were causing fundamental changes in reimbursement for services to hospitals and IDNs. Consequently, healthcare providers had to establish financial stability. This opened the door for third-party logistics providers (3PLs) to establish a strong presence in the healthcare industry. 3PLs? offered solutions to mitigate transportation and supply chain expenses that streamlined the order-to-delivery process and reduced expenses.
(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.
The latest trend in the industry, after offering maximum variety and flexible payment options, is competition for same day delivery. Companies like eBay, Walmart, Amazon and Google Express have all started efforts to try and offer same day delivery. The key to offering same day delivery is to have products stored near the potential customer. In the following sections we will explain the supply chains of Amazon and Google Express and analyze the advantages and disadvantages of their respective business model/supply chain.
For our current context, we are dealing logistics as limited to the warehousing, transport and integral management part of the whole supply chain of an organization. In any small to big business, logistics holds a crucial importance of cutting costs and avoiding waste of materials and the golden time resource (Anon., 2012). In our earlier assignment, we mentioned five critical global changes which are bring vital transform in the logistics functionalities of the enterprises. These changes were analyzed for the current period scenario and the coming decade in the organizations regarding Australian Context.
A review of literature is emphasizing the 3pl (third party logistics) performance which is cost efficient tool for FMCG (fast moving consumer goods) companies. Companies outsource their logistics and warehouse activity to the third party logistics to reduce the cost, which is directly effect on company’s other core function like production, procurement, finance. It gives competitive advantage to the company. Outsource the logistics and warehousing also directly effect on asset reduction and staff retrenchment. Today the firms are establishing symbiotic relationship among them, that is (win win situation) they all are beneficiaries.
Despite the third- party logistics was an improvement studies area in a recent business market, the studies of this area still existed some arguments and limitation (Marasco, 2008). The literature review in TPL studies based on a comprehensive literature review, which including some relevant research paper and journal paper published within the period 1990 to recent years (Selviaridis and spring, 2007). Some existing studies focus on the benefits and limitation of TPL services for company management. Leahy (1995) and other scholars were defined as the TPL is usually associated with the providing of multiple services rather than just isolation transport functions (Leahy et al., 1995). Therefore, some other research believes that the TPL services can reduce the total
The Fast Moving Consumer Goods industry ( FMCG ) is one of the most top industries served by the third party logistics. The FMCG firms utilize the services that are provided by 3PL. The impact of Third Party Logistics on FMCG firms are on customer satisfaction, logistics system performance, the impact of 3PL also reduce the capital investment in facilities, reduction in investment in information technology, reduction in man power cost. The third party logistics also impact on the improvement of specific logistics function parameters, and improvement in inventory turnover rates. The 3PL has a positive and negative impact on FMCG
In past surveys, 3PL users have clearly indicated their preference for one-stop 3PL shopping. However, as potential buyers have increased in size through sales growth, mergers and acquisitions, and international expansion, the scope of service offerings and geographical coverage involved in many recent 3PL contracts has made it increasingly difficult for one provider to meet those requirements (Gooley 2002). This makes the management of 3PL relationships more complex, and it requires effective cross-corporation management skills to realize the potential benefits of such relationships (Bowersox, Closs, and Stank 2003). 3PL Services Used Fortune 500 manufacturers use a wide variety of 3PL services. The typical user buys multiple logistics services from their provider(s). The range of services used by this year's users is shown in Table 1. The table also includes similar data from the three most recent surveys. As shown, respondents indicated that the most frequently outsourced logistics functions in 2003 were freight payment services (72 percent), shipment consolidation (66 percent), direct transportation services (62 percent), customs brokerage (62 percent), warehouse management (60 percent), freight forwarding (53 percent), cross-docking (53 percent), carrier selection (51 percent), and tracking/tracing (51 percent). The usage rates reported in most categories increased since last year's survey.
It is known to us, “in each industry, the customer is god, is operator's food and clothing parents.” This tells us that customers are important to organizations. With the current intense competition in logistics nowadays, most companies can provide high quality goods, even are willing to cut down prices if reasonable. However, how can suppliers gain a competitive advantage when high quality is expected and price must be maintained at a level to generate a reasonable return? In our views, it is no doubt that how various supplier service activities are valued by customers, more specifically, that is, the ability of logistics
This essay will discuss the well-known world’s most prevalent delivery service, UPS. UPS’s objective for business is to deliver packages to small businesses and offer package transportation. The case study video focused on the repositioning and branding of UPS. With the repositioning of the company they decided to also expand their services. The new services include the following; financial product solutions, customized supply chain, and information.
Third party logistics industry (3PL) also referred to as logistic outsourcing has become a thriving sector within the supply chain and logistics sector. As the world of logistics and supply chain management has grown so has the need for third party logistics providers to deliver comprehensive services to companies that are constantly looking for ways to stay competitive and innovative in order to improve processes, increase profits, and lower cost throughout their organization. Third party logistics providers have come to play a major role in helping companies meet those goals. As the demand for third party logistics providers increases it becomes even more important that they are able to both stay competitive among other third party logistic providers and exceed at meeting the needs of companies. The supply chain world is ever changing especially when it comes to technology which means that third party logistics providers have to be able to deliver the best and latest in technology to companies as well. As there is never a one fit all solution in the supply chain industry third party logistics providers have to be able to meet the organizational demand of their customers supply chain structure however complex and challenging it may be.
Following the paradigm shift on the role of logistics management in the recent decades, there has been a wide recognition of this as a very important aspect a business strategy in general. However due to the numerous factors promoting complexity of logistics management companies have adopted the idea of outsourcing their logistic activities to Third Party Logistics (3PL) providers. Hence, 3PLs have taken a critical role towards supply chains of heir customers.
The variability of logistics performance is quite relevant. ALP has not been able to guarantee a reliable service to its customers in the last years. There seems to be a lack of organization when providing the service to the customers, in the sense of establishing priorities and