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Pleas answer original forum with a minimum of 250 words and respond to both students sep with a minimum of 100 words each
page 1 Original Forum with References
page 2 Precious response with references
page 3 Benjamin response with references
Part I. Describe the various factors that have to be considered when selecting logistics service providers. How in practice do you think consignors make decisions concerning choosing logistics services?
Part II. End your initial response with a follow-up question for your classmates to address in further the discussion.
Part I. Logistics Service Providers are usually third or fourth party logistics providers that “are outsourced entities shippers leverage to manage a company’s warehousing, distribution, and transportation of freight” (Young, 2019). Logistics Service Providers are popular in supply chains because the technique saves the company time and worry. If a company outsources they do not have to worry about any logistics behind getting their products to their customers. For example, most companies use FedEx or UPS to deliver their items. FedEx and UPS are responsible for transportation, warehousing, reverse logistics, delivery, etc. Before logistics service providers are considered, companies decide what they need and how it will benefit the business. Companies must consider the capabilities, customer service, safety record, company stability, and company reputation (2019). The capabilities help company’s understand what the provider has that is beneficial to the overall mission. Customer service is essential in any business. If the third-party does not have excellent customer service, it could result in the customer deciding not to do business with the company. Checking safety records ensures that employees are practicing healthy safety measures. The company stability shows how long the customer will be around, and if the third-party provider is reliable or not. Last but not least, the company reputation ensure that the third party is held at a high standard and that they have an excellent reputation for managing the company’s logistic services. They are important because selecting the right logistics service provider ensures goods and services are being delivered to the customer with little to no hiccups.
Part II. Do you think Logistics Service Providers are necessary for supply chains? Provide one example of a company that is successful without Logistics Service Providers.
5 Top Factors: How to Choose a Logistics Provider (3PL). (2019, July 19). Retrieved December 30, 2020, from https://www.brwilliams.com/blog/top-5-factors-selecting-logistics-provider/
Young, A. (2019, June). Logistics Service Provider (LSP) Defined in 100 Words. Retrieved December 30, 2020, from https://blog.intekfreight-logistics.com/logistics-service-provider-lsp-defined
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When it comes down to selecting a logistic service provider there are so many factors that play a role and will impact an operation to the tenth degree wither making money or costing money and effecting all the bottom lines. It truly is a business decision when searching for a logistic service provider. Optics matter in the sense of does the company look, say and do the right thing; are they fair, equal and diverse. This goes for all aspects within the company to from employees, values, locations of services provided, capabilities etc etc as the list goes on.
According to the reading research found at least 44 common criteria that are used within searches for logistic service providers (seems to be a short list in my opinion J) Some of these commonly used criteria are as follows:
Price: Obviously when asking for a service pricing becomes a significant want and need to know to predict bottom line capabilities.
Information Technology Capability was number two on the frequency checklist which in today’s society and operational environment is not a surprise given that technology is continuing to evolve and require a larger footprint within an operation from finance, planning, execution, promoting, and social media influence.
Accurate delivery time was next. Obviously we want accuracy, efficiency and reliability when it come to delivery right? Well it is an implied task that needs to be identified, measured/preformed with a basis and requirement as it should not be taken for granted. Everyone wants what they want when they want it and do not wish to deal with mis-shipped status.
Technical/tactical capabilities: What can your service truly perform? Fleet to infrastructure, equipment, footprint, maintenance etc. This helps identify the amount of the workload the LSP can actually perform.
Flexibility is the last one that was commonly discussed in most searches and requirements. Adversity is always around the corner and prevalent within the world of logistics and transportation, how will you overcome adversity and still achieve success?
There are many factors associated with LSP requirements or criteria when being requested. How would you as an LSP representative present the ability to set at ease of a buyer of the services? What would your priorities and values be?
BAJEC, P,& TULJAK-SUBAN, D. (2017) Selecting a logistics service provider: a definition of criteria that consider the requirements of an external competitive environment. Transport Problems: an International Scientific Journal; DOI: 10.20858/tp.2017.12.se.14
Please follow directions or I will dispute