物流专业英语Unit-Eight课件.ppt

1、Unit Eight Third-party Unit Eight Third-party LogisticsLogisticsPre-reading Discussion Pre-reading Discussion v1.What is third-party logistics(3PL)?1.What is third-party logistics(3PL)?v2.Why is 3PL important to a company today?2.Why is 3PL important to a company today?v3.What is the process of impl

2、ementing a 3.What is the process of implementing a 3PL service?3PL service?IntroductionIntroductionv 1One of the hottest trends today is the 1One of the hottest trends today is the outsourcing of logistics or third-party logistics.outsourcing of logistics or third-party logistics.Without question,th

3、ird-party logistics,also Without question,third-party logistics,also referred to as outsourcing or contract logisticsreferred to as outsourcing or contract logistics，is in the midst of rapid global expansion.The is in the midst of rapid global expansion.The concept outsourcing is being used practica

4、lly in concept outsourcing is being used practically in every industry and by more than 70%of Fortune every industry and by more than 70%of Fortune 1,000 companies.Small firms to multinational 1,000 companies.Small firms to multinational companies are benefiting from the economies of companies are b

5、enefiting from the economies of scale that third-party logistics companies achieve scale that third-party logistics companies achieve by handling large volumes of goods through their by handling large volumes of goods through their warehouse and distribution operations.warehouse and distribution ope

6、rations.What Is 3PL?What Is 3PL?v 2Third-party logistics involves the use of 2Third-party logistics involves the use of external companies to perform logistics functions external companies to perform logistics functions that have traditionally been performed within an that have traditionally been pe

7、rformed within an organization.The functions performed by the third organization.The functions performed by the third party can encompass the entire logistics process party can encompass the entire logistics process or selected activities within that process.A 3PL or selected activities within that

8、process.A 3PL provider is a firm that provides outsourced provider is a firm that provides outsourced logistics services to companies for part,or logistics services to companies for part,or sometimes all of their supply chain management sometimes all of their supply chain management function.Third-p

9、arty logistics providers function.Third-party logistics providers typically specialize in integrated warehousing and typically specialize in integrated warehousing and transportation services that can be customized to transportation services that can be customized to customersneeds based on market c

10、onditions andcustomersneeds based on market conditions andvthe demands and delivery service requirements the demands and delivery service requirements for their products and materials.for their products and materials.v3A third-party logistics service is something 3A third-party logistics service is

11、something more than subcontracting or outsourcing.more than subcontracting or outsourcing.Typically,subcontracting or outsourcing covers Typically,subcontracting or outsourcing covers one product or one function that is produced or one product or one function that is produced or provided by an outsi

12、de vendor.Examples include provided by an outside vendor.Examples include automobile companies subcontracting the automobile companies subcontracting the manufacture of tires,or construction companies manufacture of tires,or construction companies subcontracting roofing,or retail companies subcontra

13、cting roofing,or retail companies outsourcing the transportation function.Third-outsourcing the transportation function.Third-party logistics providers cut across multipleparty logistics providers cut across multiplevlogistics functions and primarily coordinate all logistics functions and primarily

14、coordinate all the logistics functions and sometimes act as a the logistics functions and sometimes act as a provider of one or more functions.The primary provider of one or more functions.The primary objectives of third-party logistics providers are objectives of third-party logistics providers are

15、 to lower the total costs of logistics for the to lower the total costs of logistics for the supplier and improve the service level to the supplier and improve the service level to the customer.They act as a bridge between the first customer.They act as a bridge between the first party(supplier or p

16、roducer)and the second party party(supplier or producer)and the second party(buyer or customer).(buyer or customer).Importance of 3PLImportance of 3PLv 4 There are several reasons for the growth of 4 There are several reasons for the growth of third-party logistics over the past years.The third-part

17、y logistics over the past years.The transportation and distribution departments of transportation and distribution departments of some of the major companies have been downsizing some of the major companies have been downsizing in order to reduce operating costs.The most in order to reduce operating

18、 costs.The most logical area to reduce costs is advisory functions logical area to reduce costs is advisory functions such as operations research,followed by support such as operations research,followed by support functions such as transportation or warehousing.functions such as transportation or wa

19、rehousing.The area that companies want to strengthen by The area that companies want to strengthen by investing more is their core competency.Though it investing more is their core competency.Though it may sound like a fad,it has been a reality at may sound like a fad,it has been a reality at some o

20、f the major companies.The other reason is some of the major companies.The other reason is from the customer side.Customers demand a betterfrom the customer side.Customers demand a betterv service but are not willing to pay more money for service but are not willing to pay more money for it.This requ

21、ires the use of faster and more it.This requires the use of faster and more frequent transportation services and flexibility frequent transportation services and flexibility in inventory levels.A third-party logistics in inventory levels.A third-party logistics provider will be in a position to cons

22、olidate provider will be in a position to consolidate business from several companies and offer frequent business from several companies and offer frequent pick-ups and deliveries,whereas inpick-ups and deliveries,whereas inhouse house transportation cannot.transportation cannot.v5One of the biggest

23、 enemies in the supply chain 5One of the biggest enemies in the supply chain for companies is time.If a company has a famous for companies is time.If a company has a famous 3PL provider,the provider can indirectly 3PL provider,the provider can indirectly increase revenues through a solid logistics i

24、ncrease revenues through a solid logistics network.Solid logistics delivers solid sales by network.Solid logistics delivers solid sales by providing the customer with an accurate and providing the customer with an accurate and timely order.A customer is more likely to do timely order.A customer is m

25、ore likely to do business with a supplier if he believes his business with a supplier if he believes his orders will come in accuracy and on time.A orders will come in accuracy and on time.A well-run supply chain compresses time,reduces well-run supply chain compresses time,reduces expensive distrib

26、ution processes as well as expensive distribution processes as well as costly inventories.costly inventories.v6 In a word,any business that refuses to6 In a word,any business that refuses tovconsider outsourcing is at the risk of losing its consider outsourcing is at the risk of losing its competiti

27、ve advantages or the opportunity to create competitive advantages or the opportunity to create a competitive advantage offered by third-party a competitive advantage offered by third-party logistics providers.Even though more organizations logistics providers.Even though more organizations are shift

28、ing towards outsourcing various functions,are shifting towards outsourcing various functions,the ability to effectively manage these third-party the ability to effectively manage these third-party relationships is becoming more challenging.relationships is becoming more challenging.Process of Implem

29、enting a 3PL ServiceProcess of Implementing a 3PL Servicev 7 The process of implementing a 3PL service should 7 The process of implementing a 3PL service should be rigorous and thorough in order to get maximum be rigorous and thorough in order to get maximum benefits from it.An approach involving fo

30、ur benefits from it.An approach involving four phases is presented here.phases is presented here.v 8 Phase 1:Scoping of requirements.This is the 8 Phase 1:Scoping of requirements.This is the first step involved in selecting a good logistics first step involved in selecting a good logistics provider.

31、The buyer must identify the logistics provider.The buyer must identify the logistics functions that need to be outsourced.The coverage functions that need to be outsourced.The coverage of the functions in terms of geographical area,of the functions in terms of geographical area,customers and commodi

32、ties also has to be well-customers and commodities also has to be well-defined,for instance,the outsourcing of defined,for instance,the outsourcing of management of the warehousing function for management of the warehousing function for international customers of computer printers.Sointernational cu

33、stomers of computer printers.So v the first phase is concerned with defining the the first phase is concerned with defining the scope of the services to be outsourced and scope of the services to be outsourced and preparing a request-for-proposal(RFP)to be sent preparing a request-for-proposal(RFP)t

34、o be sent out to prospective providers.out to prospective providers.v 9 Phase 2:Selection of service provider.This 9 Phase 2:Selection of service provider.This phase involves two stages.The first stage phase involves two stages.The first stage involves identifying potential providers for the involve

35、s identifying potential providers for the functions to be outsourced.A list of potential functions to be outsourced.A list of potential service providers for a logistics function may be service providers for a logistics function may be found from trade magazines,published surveys and found from trad

36、e magazines,published surveys and web sites.The second stage involves selecting one web sites.The second stage involves selecting one or a few providers actually to contract out the or a few providers actually to contract out the service.This includes evaluation of proposals,service.This includes ev

37、aluation of proposals,site visits,getting references and then combiningsite visits,getting references and then combiningvall these together to list the final all these together to list the final candidates.The results may then be combined candidates.The results may then be combined with experiential

38、 knowledge and judgment to with experiential knowledge and judgment to select the actual providers.select the actual providers.v10 Phase 3:Implementation and contracting and 10 Phase 3:Implementation and contracting and follow-up.This is a very important stage since follow-up.This is a very importan

39、t stage since it involves the actual contract.The contract it involves the actual contract.The contract should cover service requirements,price,should cover service requirements,price,payment schedule,duration and other specific payment schedule,duration and other specific items.The specific clauses

40、 may cover issues items.The specific clauses may cover issues related to contract cancellation,price related to contract cancellation,price increases and sharing of cost savings.The typeincreases and sharing of cost savings.The typevof metrics that will be used for measuring service of metrics that

41、will be used for measuring service and the frequency of measurement should be included.and the frequency of measurement should be included.The type and extent of support that will be provided The type and extent of support that will be provided by the company to the provider and training by the comp

42、any to the provider and training requirements should also be stated clearly.requirements should also be stated clearly.v11 Phase 4:Management and monitoring.This is a 11 Phase 4:Management and monitoring.This is a very critical step to continue to improve the very critical step to continue to improv

43、e the relationship between the provider and the company as relationship between the provider and the company as well as to measure the performance of the provider well as to measure the performance of the provider and the company in terms of the expectations set out and the company in terms of the e

44、xpectations set out in the contract.This may be done at formal meetings in the contract.This may be done at formal meetings or through quarterly reports.The buyer of the or through quarterly reports.The buyer of the third-party service should have a team to work with third-party service should have

45、a team to work with the provider.This team will be handling andthe provider.This team will be handling andv managing all the issues related to the contract or managing all the issues related to the contract or agreement.Issues of poor performance by the agreement.Issues of poor performance by the pr

46、ovider and inadequate support from the company provider and inadequate support from the company should be reviewed periodically to identify the should be reviewed periodically to identify the barriers and fix them.barriers and fix them.Future of 3PLFuture of 3PLv 12 Without question,the future of th

47、ird-party 12 Without question,the future of third-party logistics is in the midst of rapid global logistics is in the midst of rapid global expansion.Undoubtedly,the growth will be a expansion.Undoubtedly,the growth will be a result of the marketplace.Logistics requirements result of the marketplace

48、.Logistics requirements are shaping the market direction,this is fueled are shaping the market direction,this is fueled by the growth in outsourcing.As logistics by the growth in outsourcing.As logistics capabilities of 3PL providers improve,higher capabilities of 3PL providers improve,higher expect

49、ations of the services are provided.Higher expectations of the services are provided.Higher expectations such as speed and accuracy will expectations such as speed and accuracy will increase,those same expectations are causing the increase,those same expectations are causing the cost to either remai

50、n the same or decline.All 3PL cost to either remain the same or decline.All 3PL providers will not only meet these expectations,providers will not only meet these expectations,but also need to exceed them.In order for 3PLbut also need to exceed them.In order for 3PLv providers to continue to grow an