As enterprises continue to adapt to globalization, their procurement and logistics also expand. To satisfy their clientele, enterprises turn to third-party logistics (3PLs). The 3PLs are organizations that handle and manage all or a segment of another companies’ supply chain or distribution. The 3PLs that handle water carriers and pipelines are significant in facilitating water-efficient transportation across the globe. The paper focuses on the benefits and limitations of 3PLs providers, water transportation, and pipelines.
One of the significant benefits is that 3PLs providers are that it guarantees flexibility and scalability. The providers can utilize labor, resources, and space that suites their consumer needs. In the contemporary world, the complex nature of conducting business and the ever hyper-competitive industry setting necessitates companies to concentrate on elevating their competitive strengths to adjust fast (Sinkovics et al., 2018). Secondly, 3PLs are convenient and ensure competence. Enterprises outsourcing their supply chain function to third parties tend to have enough resources and time to dedicate to their core business areas, resulting in higher profitability and faster progression. Thirdly, the 3PLs improve quality and enhanced optimization. They provide an opportunity to the businesses in acquiring the latest adjustments and reduce the delivery time. This improves services and ensures cost-effectiveness.
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However, the limitations are that water transportation is slow, and not many individuals are patient enough to get the required order. There is a lower control constrain in that the 3PLs have face uncertainty in conducting supply for other businesses. Additionally, there are the information technology-linked intricacies. As logistics evolves, the use of information technology for handling distribution processes has also augmented. Arguably, the increased application of information technology has also led to the development of intricacies since it is an intricate area—additionally, complexities related to reverse supply chain. A reverse supply chain is a set of activities that adhere to post-sales and are associated with recapturing value to end the life cycle. It increases the cost in the 3PLs water carriers and pipelines.
References
Sinkovics, R. R., Kuivalainen, O., & Roath, A. S. (2018). Value Co-creation in an outsourcing arrangement between manufacturers and third party logistics providers: Resource commitment, innovation and collaboration. Journal of Business & Industrial Marketing , 33 (4), 563-573. https://doi.org/10.1108/jbim-03-2017-0082
