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3PL primer for business success
What is 3PL?More and more organizations worldwide want to develop products for global markets. At the same time , they need to source materials globally to be competitive. One of today ’ s trends to solve this problem is outsourcing logistics or using third-party- logistics (3PL) to manage complex distribution requirement.
Outsourcing of logistics tasks and supply chain responsibilities is a dynamic model. The most interesting aspect is that companies-manufacturers, retailer , wholesalers, and distributors-are turning over parts of their supply chain to firms that have their roots as commodity service providers. Firms that know ocean shipping, forwarding, warehousing, or trucking are now handling and, in some cases, managing broad domestic and international logistics activities.
3PLs, regardless of how experienced in outsourcing, face common challenges to prime their market and keep it primed. These include:
Define yourself. How do you see yourself and your company? This is an important question. It frames who you are and how you present and position yourself in the market. Are you an ocean carrier with a 3PL service option? Are you a warehouse with a 3PL service? Or are you a logistics service provider with a strong shipping, transport, warehouse or forwarding capability? There is substantial difference between these two views, a difference that affects how you position yourself and how you are perceived in the market.
Develop strategy. Confusion sometimes exists between operational efficacy and strategy. Operational efficacy is doing the same or similar activities better than competitors. Management tools--such as benchmarking, partnering, reengineering and change management, for example--are means that let companies reduce costs and achieve performance improvements. They are necessary to sustaining competitiveness. But they can also be temporary achievements, as competitors work to mimic programs that work.
Strateg
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