LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Submitted By,

ELDHO SAJU

Department Of M.Com MIB S3

Mar Athanasius College (Autonomous)

Kothamangalam

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OUTSOURCING

Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff

“Cost Cutting Measure”

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LOGISTICS OUTSOURCING

• Logistics outsourcing is defined as engaging a logistic service provider to carry out and manage your company's logistics requirements
• The service provider will take care of end-to-end logistics requirements such as warehousing, transportation, and delivery.

THIRD PARTY LOGISTICS (3PL)

• Third party logistics is simply the use of

and outside company to perform all or part of

the firm's materials management

and product distribution function

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TOP 10 IN THE WORLD

IN INDIA

ADVANTAGES OF 3PL

1.MAXIMIZING REVENUES

Companies can concentrate on their core areas and utilize both financial and non-financial resources where it can maximize returns

2. COST CONTROL

A primary Concern of a company is to control and then think of reduction

3. SCALABILITY

A 3PL provider can scale a company's space, labour, and transportation depending on exactly what services are required.

4. TIME SAVINGS AND COST SAVINGS

Building and maintaining a warehouse determaining how to transport goods /or services optimizing services etc. .

A 3pl eliminates those costs and free ups key employees to focus on the manufacturing strategic planning etc....

5.EXPANSION

To Expand Business into Emerging markets and new areas, leverage new supply chain improve customer service...

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DISADVANTAGES OF 3PL

1.LOSS OF CONTROL

An organisation is giving up a certain amount of control of the delivery.

2. COST

Its difficult to establish a cost effective partnership between a shipper and a 3PL

3. LOWERING STANDARDS

less loyalty on products Lower Costs, Motivated by Profit

4. BREACH OF CONFIDENTIALITY

• exposure of customer personal data

• sharing of commercially sensitive information.

• clearly obvious risks to the security of personal data

FUNCTIONS OF 3PL PROVIDERS

1. SHIPPING AND RECIEVING

3PL providers are focused on the management of the shipping process from start to finish,

Also include management of carrier relations, and freight data and matrix reports for real-time visibility and increased transparency throughout the shipping process.

2.TRANSPORTATION

Responsible for the actual transport of goods or services between locations

3. WAREHOUSING

A warehouse 3PL is integrated into a company's warehousing and transportation procedures, and specializes in the storing and distribution of goods and/or services

4. DISTRIBUTION

Many 3PL organizations also provide a wide variety of distribution and wholesale services, including outbound order fulfilment, picking and packing, custom labelling, and manufacturing

3PL COMPANIES TEND TO SPECIALIZE IN:

• Inbound and outbound freight.
• Customs
• Freight consolidation
• Warehousing
• Distribution
• Order fulfillment
• Cross-docking
• Inventory management

THANK YOU....