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楼主 3PL2009/2/28 16:15:00

Development of 3PL in Suzhou

Preface:

Since the 1980s with the development of global economic, and the deepening and development of cyber- ecnomic that made a great chage to the situation of enterprises’ manufacture and business. These changes lead a more acute competitive among business and reduce the profit. Therefore a lot of companies have to seek for “a third profit source”. The ues of 3PL can help the enterprises fouce on its major business, save the expenses, reduce the captial, for the further more pushing the global economic, adopting new technology and accelerating reaction of markets.

Introduction

What is “third-part-logistics”

3PL is a logistics operation and management that means manufactures concentrate on their major works and then award a contract to a professional logistics service compay to deal with the logistics work for the company. And at the same time the compay maintains a close contact with the logistics service compay by the information system in order to achieve a conrol to the whole process. As the service need to sign a contract which has a limited period with the enterprise so that the 3PL has another name called “contract logistics”. Generaly speaking the 3PL compay have their own transprotation tools and wearhouses, and they do the actual logistics activities. The common 3PL
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service includes logistics system design, capacity of EDI, reportsheet management, consolidated shipment
, carrier selecive, commission agent, customs agent, information management, warehouse, consltant, carrige charge, carrige charge negotiation and so on.

?? The profit source of 3PL

The third party logistics must use an attractive service to satisfy their customers, and the service must achieve the customers’ expectations. The expectations are letting customers to benefit from following aspects

1 Task profit: On the one hand through the 3PL the customer can get the logistics service which the compay it organizes the logistics activities but cannot suffice or the basic production facotors that logistics service must need such as professional konwledge and techonolgy supports. These are the most important reasons why the 3PL can come into being and develop.

? On the other hand it may improve the managmet effectives in-company, for example incrasing the flexibilit of the task, improving the quality ,service and speed enhancing the service consisitency all of these make the work more efficient.

2 Economic and fiance profit: Through the outsourcing ont only can transit the constrant cost into varibale cost but also avoide plunge investment whereupon the company can use the money in other aspects so that reduce the cost.

3 Managemet profit: Outsource logistics can make the compay’s ?human resource focused on the main work and at the meantime get benefit from the nucles managemet ability of the outsource compay. If the enterprise ues the onefold source third party logistics it can reduce transaction costs and can relieve pressure that coordinat from several logistics service companies. Profits bringing to the customers that through the third part logistics to integrate supply channels and to reduce suppliers are also potential reasons why outsource logistics be needed.

4 Strategy profit: Outsource logistics can also generate strategy profit that is flexibility including geographic range flexibility and making adjustments according to the environmental variation flexibility.

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The functions of 3PL in today’s logistics

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