Date post: | 08-Jan-2017 |
Category: |
Business |
Upload: | arun-kumar |
View: | 8,432 times |
Download: | 0 times |
TPL AND FPL
arun palanisamyI MBA, TNAU. 105/02/2023
CONTENTS
arun palanisamyI MBA, TNAU. 2
1.Logistics outsourcing
2. Third party logistics
3.fourth party logistics
4.Difference between the TPL and FPL.
05/02/2023
arun palanisamyI MBA, TNAU. 3
LOGISTICSLogistics is the management of the flow of goods between the
point of origin and the point of consumption in order to meet some
requirements.
information flow,
material handling,
production,
packaging,
inventory,
transportation,
warehousing, and often security05/02/2023
arun palanisamyI MBA, TNAU. 4
Logistics outsourcing involves a relationship between a company
and an LSP (logistic service provider), which, compared with basic
logistics services, has more customized offerings, encompasses a broad
number of service activities, is characterized by a long-term
orientation, and thus has a strategic nature
Logistics outsourcing
05/02/2023
Outsourcing - Industry TrendsFindings of a Survey : Why company's Outsource
arun palanisamyI MBA, TNAU. 505/02/2023
arun palanisamyI MBA, TNAU. 605/02/2023
Third-party logistics
(3PL) involves using external organizations to execute logistics
activities that have traditionally been performed within an organization
itself.
arun palanisamyI MBA, TNAU. 7
For example, if a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. 05/02/2023
The evolution of 3PL market is explained with reference to three distinct phases
In 1980's many transportation and warehousing firms developed into 3PL providers
( e.g. Exel Logistics and Frans Maas )
In the early 1990's firms that specialized in express parcel deliveries entered the markets
( e.g. DHL, TNT , UPS and FedEx )
In the late 1990's , companies originally specializing in financial services , I.T. services and management consulting entered the market by
developing competence in information systems and supply chain planning
arun palanisamyI MBA, TNAU. 805/02/2023
arun palanisamyI MBA, TNAU. 905/02/2023
Services Provided by 3PLsService Category
Basic Service Some specific value added services
Transportation Inbound, outbound by ship, truck, rail, air
Track/trace, mode conversion
Warehousing Storage, facilities management
Cross-dock, in-transit merge, inventory control
Information technology
Provide and maintain advanced information systems
Transportation management systems, warehousing management
Reverse logistics Handle reverse flows Recycling, customer returns, repair/refurbish
Other 3PL services
Customs brokering, hazardous material, order taking, consulting, port services, etc.
05/02/2023 10arun palanisamyI MBA, TNAU.
Services Provided By 3PL’s
arun palanisamyI MBA, TNAU. 1105/02/2023
TYPES OF 3PL PROVIDERSHertz and Alfredsson (2003) describe four
categories of 3PL providers
Standard 3PL Provider: this is the most basic form of a 3PL
provider.
pick and pack,
warehousing,
distribution
arun palanisamyI MBA, TNAU. 1205/02/2023
Service Developer: this type of 3PL provider will offer their customers advanced value-added services such as:
tracking and tracing
cross-docking
specific packaging
unique security system
Service Developer
arun palanisamyI MBA, TNAU. 1305/02/2023
This type of 3PL provider comes in at the request of the
customer and essentially takes over complete control of
the company's logistics activities.
The 3PL provider improves the logistics dramatically, but
does not develop a new service.
The Customer Adapter:
arun palanisamyI MBA, TNAU. 1405/02/2023
1. integrated logistics service provider
2. contract-based service provider
3. consulting service provider
3PL (or 3PL provider) has the following features at present
arun palanisamyI MBA, TNAU. 1505/02/2023
Asset-based - provider owns some assets, particularly transport-
related assets such as trucks, warehouses, etc.,
Non-asset-based -does not own such assets, and usually relies on
sub-contractors
arun palanisamyI MBA, TNAU. 16
3PL provider classified
05/02/2023
Buyers of 3PL ServicesCustomer # of 3PL’s Used
General Motors 37Wal-Mart Stores 33Ford Motor, HP 27Procter & Gamble 20General Electric 17Georgia Pacific, IBM 16PepsiCo, Sears 13Coca-Cola, Sara Lee, Target, Xerox 12
General Mills 11Delphi, Safeway 10
GREATER THE NUMER OF COMPONENTS INVOLVED IN MANUFACTURING MORE 3PL ACTIVITES WILL BE OUTSOURCED
Source : international logistics
arun palanisamyI MBA, TNAU. 1705/02/2023
arun palanisamyI MBA, TNAU. 1805/02/2023
arun palanisamyI MBA, TNAU. 1905/02/2023
arun palanisamyI MBA, TNAU. 20
Advantages and Disadvantages of 3PL
05/02/2023
The partnership between Ryder Dedicated Logistics and GM Saturn division is a good example of 3PL. Saturn focuses on automobile manufacturing and Ryder manages most of Saturn other logistics considerations. Ryder deals vendors, delivers parts to the Saturn factory and delivers finished vehicles to the dealers . Saturn Orders parts using Electronic Data Interchange ( EDI ) and sends same information to Ryder. Ryder makes all the necessary pickups from 300 different suppliers in the U.S., Canada and Mexico using special decision-support software to effectively plan routes to minimize transportation costs.
arun palanisamyI MBA, TNAU. 21
3PL example
05/02/2023
3PL is more complex than normal outsourcing of logistics activates
.When speaking of 3PL a true partnership condition is usually
assumed because
Strategic nature of services purchased
Buyer of 3PL realizes that synergies can be achieved by exploiting
the logistics provider distinct competencies
TPL vs OTHER ACTIVITIES
arun palanisamyI MBA, TNAU. 2205/02/2023
The concept of a fourth-party logistics (4PL) provider was first
defined by Andersen Consulting as an integrator that assembles the
resources, planning capabilities, and technology of its own
organization and other organizations to design, build, and run
comprehensive supply chain solutions.
fourth-party logistics (4PL)
arun palanisamyI MBA, TNAU. 2305/02/2023
arun palanisamyI MBA, TNAU. 24
4pl
05/02/2023
arun palanisamyI MBA, TNAU. 2505/02/2023
Synergy Plus operating model
Solution Integrator model
Industry Innovator model
arun palanisamyI MBA, TNAU. 26
4pl types
05/02/2023
1. Partnership between 4PL – 3PL to market supply chain solutions
2. Capabilities and market reach of both partners are combined
3. The 4PL provides:
Technology
supply chain strategy skills
capability to go to market
by program management expertise
arun palanisamyI MBA, TNAU. 27
Synergy Plus operating model
05/02/2023
Core Model: 4PL operates comprehensive supply chain
solutions for a single client.
Solution encompasses resources,
capabilities and
technology
of the 4PL with complementary service providers
arun palanisamyI MBA, TNAU. 28
Solution Integrator model
05/02/2023
4PL develops and runs a supply chain solution for multiple industry
players with focus on synchronization and collaboration
This model provides the greatest benefits, however it is complex and
a great challenge
arun palanisamyI MBA, TNAU. 29
Industry Innovator model
05/02/2023
Procurement Storage Distribution
arun palanisamyI MBA, TNAU. 30
Functions provided by a 4PL company
4pl providers
UPS,
CMA
CGM
05/02/2023
arun palanisamyI MBA, TNAU. 31
Reasons Why You Might Need a 4PL
1.Higher order-to-delivery cycle times, and order-to-cash cycles that are
increasing in length. Order-to-cash cycles affect other areas of the
company and can be one big area where improvement can free up
cash for important enterprise initiatives such as research and
development
2.The need and demand for IT resources. Lack of IT infrastructure to
support an expanding global supply chain can inhibit growth.
05/02/2023
3.Global growth, more inventory in more places, and a shifting revenue
recognition point. Companies often lack the ability to generate
substantive supply chain performance improvement on their own.
4.Global expansion. Companies wanting to get into markets they have
not been in before need flexible, effective supply chain processes to be
successful
SOURCE: Carl Fowler, senior director of operations, and leader of Menlo Logistics’ 4PL practice
arun palanisamyI MBA, TNAU. 3205/02/2023
Economies of Scale Reduced Supply Chain costs Increased flexibility Combines the advantages of in- and outsourcing Manufacturers can focus on core competencies Improved customer service Reduced capital requirements
arun palanisamyI MBA, TNAU. 33
Benefits of 4pl
05/02/2023
Loosing sight of original core-concept of SCM due to loss of
control
Customer relationships should not be dismissed on basis of
efficiency
Strict functional organization structure hinders integrated
Supply Chains
Resistance to change – the biggest obstacle to implementation
of new approaches
arun palanisamyI MBA, TNAU. 34
Problems of the 4PL Concept
05/02/2023
An example here would be a bicycle importer. The main function is to
import bicycles however, they need to have spare parts for these
unique bikes. A 4PL would manage the total logistic operations for
the spare parts business.
arun palanisamyI MBA, TNAU. 35
example
05/02/2023
Difference between 3PL and 4PL FPL differs from TPL in several respects
FPL organization is often a joint venture between a primary client
and one or more partners;
FPL organization acts as a single interface between the client and
multiple logistics service providers;
The major part, of the client's supply chain is outsourced to the FPL
organization.
arun palanisamyI MBA, TNAU. 3605/02/2023
ALL THE COMPANYS WOULD LIKE TO PROVIDE
AN BETTER THING IN BETTER MANNER TO
STABLIZE AND INCREASE THEIR EFFECTIVENESS
AND EFFECIENCY IN THIS COMPETITATIVE
WORLDarun palanisamyI MBA, TNAU. 37
CONCLUSION
05/02/2023
Thank u
arun palanisamyI MBA, TNAU. 38
The supply chain integration The raise of 4pl : gail dutton Third party logistics by C. John Langley Jr., Ph.D.
Logistics outsourcing and selection of third party logistics service provider (3pl), erdal çakir 2009.
Fourth party logistics a study of modern logistics Paulo Bragança 2009
http://www.cquential.co.za/industries/3pl-4pl/
REFERENCE
05/02/2023