Introduction
Third-party Logistics (3PL) refers to the use of third-party businesses in the process of outsourcing of different aspects that concerns distribution, warehousing, and the fulfilment of services within an organization. The providers of the third-party logistics engage in the specialization of integrated operations in order to enhance the customization of consumer needs within the supply chain management. The report will focus on addressing crucial aspects that concerns the impact of 3PL on logistics and the supply chain by focusing in key elements discussed within the problem statement. The problem statement maintains that, Third Party Logistics companies are on a rapid rise towards maturity with advances in technology, however 3PL services are limited in their potential until partner companies are up to speed on technology for collaboration and information sharing. The implementation of third-party logistics within an organization helps in enhancing the supply chain management processes leading to promoting effectiveness in the overall performance of an organization.
Literature Review
Third-party Logistics provider play an integral role in promoting effectiveness and efficiency in operations within any given company. In recent years, the advancement in technology has contributed to the growth of the 3PL considering that the advances create opportunities for growth and development within the supply chain management processes. According the Stevens & Johnson (2016), the 3PL providers engage in the analysis of the market conditions in order to identify critical aspects concerning the customers and ultimately engage in processes to ensure that the products have the ability to meet the identified needs of the customers. The first aspect of consideration while addressing the impact of 3PL on logistics and supply chain entails Reverse Logistics. Reverse logistics involves major operations that capitalizes on the reuse of products and services within an organization.
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Considering that reverse logistics focuses on the processes that involves planning and implementing strategies to reuse and increase the value of the products that would have otherwise lost value, it is necessary to understand the impact of 3PL in such processes. According to Liu & Lee (2018), a well-established 3PL provider facilitates the reverse logistics considering that they offer proper facilities to store goods that need to be reused. The 3PL providers facilitates the processes of remanufacturing and refurbishing products in a bid to enhance their value. In order to enhance the operations within the supply management, the 3PL providers engage in the use of technological advances that enhances the ability to influence and impact the reverse logistics operations within any given organization. Although the 3PL services faces limitations, the impact in reverse logistics has enhanced the operations thereby creating more relevance within the green technology.
Another crucial aspect of consideration when dealing with the impact of 3PL on logistics and supply chain management entails the element of E-Commerce. According to Liu & Lee (2018), majority of ecommerce business utilize the 3PL providers in major operations that involve the management of supply chain. The 3PL providers focuses on overseeing business operations that concern the supply chain management, with the aim of enhancing the logistics of the business. The impact of 3PLs on the ecommerce business entails the optimization of the supply chain in a bid to allow the online stores to concentrate on other business operations, which may involve the development of proper marketing strategies for the business. Considering that the 3PLs implements the use of technology to undertake different operations concerning the supply chain management, the online companies tend to experience reduced costs in the logistics operations thereby providing a platform for enhance performances within a competitive market.
When focusing on the issue of limited potential that hinder effective collaboration and information sharing between the 3PLs and the partnering organization, it is necessary to examine factors that concern 3PL and information technology. According to Stevens & Johnson (2016), information technology is acritical in the 3PL providers considering the nature of services that are required in the process of enhancing effectiveness. Firstly, the third-party logistics providers require to analyze crucial information that concern the management of the supply chains within different organizations. The information helps in the analysis of factors that influence the needs and behaviors of customers in different organizational settings. Secondly, the 3PLs requires to identify appropriate technologies that are relevant in the processes involving company’s logistics and the effective management of supply chains. In that case, 3PLs and information technology are factors that have a major influence on the effectiveness in logistics and supply chains within an organization.
Results/ discussions
The topic on the use of 3PLs on logistics and supply chain helps in creating broad understanding of the factors associated with the 3PLs in relation to enhancing effectiveness in the management of supply chains. Based on the research concerning the implementation and impact of the 3PLs in organizations, I believe that the use of third-party logistics helps in enhancing operations associated with supply chain management. I have learnt that the implementation of technological advances by the 3PLs may help in enhancing operations thereby overcoming the problem identified, which concerned the limitations of services with regard to the ability to collaborate with the partnering companies. I have learned that 3PLs have a major impact on the aspects of logistics and supply chain management, which leads to enhancing operations within a company.
Discussion of Potential Solutions
Considering the problem identified regarding the limitations faced by the 3PLs while engaging in partnership with other companies, it is necessary to focus on recommendations that would provide possible solutions. The first possible solution to the problem entails proper use of IT systems in order to capitalize on effective communication and information sharing on aspects that concern the supply chain management and the logistics of a company. The second solution to the problem identified involves enhancing flexibility and adaptability in order to engage in positive relations between different organizations based on their individual needs. Lastly, engaging in quality management of the 3PLs may help in overcoming the problem identified and provide a platform for impacting and influencing the logistics and supply chain within any given organization.
Conclusion
In conclusion, the providers of the third-party logistics engage in the specialization of integrated operations in order to enhance the customization of consumer needs within the supply chain management. Third-party Logistics provider play an integral role in promoting effectiveness and efficiency in operations within any given company. The first aspect of consideration while addressing the impact of 3PL on logistics and supply chain entails Reverse Logistics. Another crucial aspect of consideration when dealing with the impact of 3PL on logistics and supply chain management entails the element of E-Commerce. When focusing on the issue of limited potential that hinder effective collaboration and information sharing between the 3PLs and the partnering organization, it is necessary to examine factors that concern 3PL and information technology. I believe that the use of third-party logistics helps in enhancing operations associated with supply chain management.
References
Liu, C. L., & Lee, M. Y. (2018). Integration, supply chain resilience, and service performance in third-party logistics providers. The International Journal of Logistics Management , 29 (1), 5-21.
Stevens, G. C., & Johnson, M. (2016). Integrating the supply chain… 25 years on. International Journal of Physical Distribution & Logistics Management , 46 (1), 19-42.
