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Inbound Logistics

The document discusses inbound logistics and third-party logistics providers (3PLs). It notes that companies often outsource logistical activities like transportation, warehousing, and inventory management to 3PLs in order to reduce costs, focus on core activities, and gain expertise. The document also examines partnerships between companies and 3PLs, explaining that successful partnerships are based on mutual trust and sharing of risks/benefits, and require compatibility between partners.

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PRATICK RANJAN GAYEN
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909 views20 pages

Inbound Logistics

The document discusses inbound logistics and third-party logistics providers (3PLs). It notes that companies often outsource logistical activities like transportation, warehousing, and inventory management to 3PLs in order to reduce costs, focus on core activities, and gain expertise. The document also examines partnerships between companies and 3PLs, explaining that successful partnerships are based on mutual trust and sharing of risks/benefits, and require compatibility between partners.

Uploaded by

PRATICK RANJAN GAYEN
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Inbound Logistics

By

PRATICK GAYEN.

1 04/11/09 10:23 PM
Presentation Plan

 The production planning process


 The procurement process

 Outsourcing of logistical activities

 Third Party Logistics providers


(3PL’S)
 Partnership agreements

2 04/11/09 10:23 PM
Sub-contracting and
Outsourcing
 Sub-contracting:
 Activities that are too complex or that require
special competencies
 Activities that are outside the field of
competencies of our enterprise (example
construction and aerospace industry)
 Outsourcing:
 Delegate to others activities that we were
doing ourselves previously
3 04/11/09 10:23 PM
Outsourcing of logistical
services to «3PL’s»
 To delegate to another organization
part or all of logistical activities
 These activities include:
 Transportation
 Warehousing
 Order processing
 Inventory management
 Logistics information systems

4 04/11/09 10:23 PM
Some of the major 3PL’s
 Ryder  TNT Logistics
 Tibbett & Britten  Hunt Logistics
 Circle  UPS SCS
 Schneider  DSC
 Bax Global  Caliber
 Exel  Menlo
 GATX  USCO
 Geodis  FedEx

5 04/11/09 10:23 PM
3PL: Some examples

 Whirlpool Ryder Dedicated


 Motorola UPS SCS
 Proctor & Gamble Exel Logistics
 Wal-Mart (Can) SCM (T & B)
 Domtar (Can) Groupe Robert
 Goodyear CAT

6 04/11/09 10:23 PM
Reasons for using 3PL’s?
Re d u c e c o sts
F o c u s o n c ritic a l a c tiv itie s
Im p ro v e o p e ra tio n a l effic ie n c y
F lex ib ility %
Ac q u ire e x p e rtis e
C u s to m e r se rv ic e

0 20 40 60

7 04/11/09 10:23 PM
3PL’s: Services offered
Transportation
Warehousing
Consolidation

Consultation
Carrier selection
Packaging and labelling
%
Information systems
Tariffs negotiation

Fleet management
Reverse logistics

0 20 40 60 80

Source: CLM Annual Conference, 1999.


8 04/11/09 10:23 PM
Partnership - a definition

• A partnership is a customized business


relation based on mutual trust, openness,
and the sharing of risks and benefits.
• Its objective is to procure a competitive
advantage resulting from improved
performance compared to what partners could
have obtained individually.

9 04/11/09 10:23 PM
Partnership Life Cycle

 Having a vision
 Searching for a partner

 Negotiating an agreement

 Managing the relationship

10 04/11/09 10:23 PM
Having a vision and searching
for a partner

11 04/11/09 10:23 PM
Forming a partnership
Reasons Factors
leading to a facilitating
partnership Decision to engage partnerships
in a partnership

Shared activities and processes

Partnership results

Reevaluation
Source: Lambert, D.M., M.A. Emmelhainz et J.T. Gardner, «Developping and 04/11/09 10:23 PM
12
Implementing Supply Chain Partenership», IJLM, vol. 7, no 2, 1996.
Reasons leading to a
partnership

External factors:
•Consumer requirements
•Logistical excellence / complementary
•Information technologies and systems
•Complexity and globalization of markets

13 04/11/09 10:23 PM
Reasons leading to a
partnership

Internal factors:
• Minimizing costs (ex. transportation)
• Increase speed and reduce cycle time
• Improve service/product quality
• Increase customer satisfaction
• Better utilization of assets

14 04/11/09 10:23 PM
Partnership - advantages
 Reducing the number of suppliers
 Collaborative planning

 Risk sharing

 Continuous improvement

 Acquiring an expertise

 Requiring less resources and capital

 Increased flexibility

15 04/11/09 10:23 PM
Partnership - disadvantages
 Difficult to select a partner
 Loss of direct control over outsourced
activities
 Performance evaluation may be difficult

 Risk of logistical dependency

 Internal resistance to change

16 04/11/09 10:23 PM
Facilitating factors
 Compatibility of organizations in terms of culture
and conduct (individuals)
 Similar management techniques and practices
 Readiness to share with partner
 Complementary needs and competencies
 Symmetry
 There must be a common interest!

17 04/11/09 10:23 PM
Activities supporting the
partnership (cont’d)
 Mutual trust and engagement
 Sharing risks and benefits

 Investments
 Human
 Material
 Financial

18 04/11/09 10:23 PM
Conditions for a successful
partnership
 A complex and  Exchange of
gradual approach « rich » information
 Trust between  Shared innovation
partners  Firm engagement
 Socio-  Common learning
psychological process
proximity
 Dedicated
resources

19 04/11/09 10:23 PM
Conclusion

 Partnership arrangements have to


be adapted to the particular
situation and specific needs of the
partners
 Successful partnerships require
time and energy

20 04/11/09 10:23 PM

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