Integration city (partnering with a third-party logistics provider)
Integration city (partnering with a third-party logistics provider)
RennieE. APICS – The Performance Advantage (USA), September 2005, Vol. 15 No. 8, Start page: 39, No of pages: 3
Purpose – To explain how to maximize use of a third-party logistics provider (3PL). Design/methodology/approach – Outlines three levels of 3PL relationships, the first being purely transactional with no long-term contracts or partnerships, the second involving negotiated contracts and integrated information systems, the third characterized by fully integrated infrastructures, strategic partnerships and lasting relationships. Discounts concerns regarding customer lock-in due to full integration, argues that benefits in customer service, delivery performance, and inventory control outweigh lock-in disadvantages, and maintains that a high quality 3PL can provide solutions, suggest improvements/ opportunities and support internationalization and business growth. Cites actual examples to support argument. Originality/value – Emphasizes that companies need to think of their 3PL providers as a strategic integrator rather than a vendor.
Style: General reviewISSN: 1056-0017Reference: 34AW096
Keywords: Integration, Service delivery, Service systems, Supply chain management, Transport management
