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Logistics: The Powerful Force Reshaping Business Today

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pocharle
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Supply Network Guru
Re: Leveraging supplier strength
pocharle   10/10/2010 2:36:55 PM
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tech4people,

Great point. In runninag a small business, you do realize the power of delegation (in this case outsourcing). This totally helps to have a fixed budget allocated to certain tasks, instead of having the unknowns pop up if the same resources are brought in-house.

tech4people
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Supply Network Guru
Re: Leveraging supplier strength
tech4people   10/10/2010 2:31:13 PM
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Bolaji,

Your thinking makes perfect sense.

Today SMBs(which is where most of the creative people today function,primarily because of the freedom that smaller organizations afford them);have been able to successfully launch very good quality,market winning products because they are able to successfully outsource all non-core but still important parts of the business cycle.

This is a trend which is not going to go away and needs to be embraced with increasing regularity.for instance do I want to be the one who takes the package all the way to the Post Office and pays for it,Signs for it and then return to the office or can I not just call UPS over and get them take care of everything for me?

Makes a whole lot of sense.

Regards

Ashish.

disty advocate
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Stock Keeper
Re: Logistics
disty advocate   10/7/2010 6:33:29 PM
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i did read his message that is why i posed the question. i do hope someone can provide an answer to my question{s}. Using 3pls can be very efficent {maybe} when the product doesnt need to be touched or have value add. But to add another link in the chain always adds cost. so lets open the dialog on how to elminate cost by using 3pls -----and why distys might agree to this or work with 3pls to bring the cost for wharehousing down.

Barbara Jorgensen
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Blogger
Logistics
Barbara Jorgensen   10/7/2010 5:15:47 PM
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Hi disty advocate--another reader maybe able to help you--see mesage from DLongino. Hope it helps!

Barbara Jorgensen
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Blogger
Logistics
Barbara Jorgensen   10/7/2010 5:13:47 PM
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Thanks DLongino. It makes sense to utilize 3PL warehouses rather than duplicate the effort every time a compnay expands.

disty advocate
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Stock Keeper
Re: Proximity warehousing
disty advocate   10/7/2010 12:29:56 PM
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having local wharehousing is fine as long as the associated costs are well understood. can some please detail out the additional cost for this and also some insight of how to offset those costs

DLongino
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Stock Keeper
Re: Proximity warehousing
DLongino   10/7/2010 12:02:33 PM
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Proximity warehouses can be provided by 3PLs. I work for UPS and we have more than 800 located in more than 120 countries.

Barbara Jorgensen
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Blogger
Proximity warehousing
Barbara Jorgensen   10/1/2010 8:08:40 AM
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One advantage I can see in this outsourcing model is the availability of warehouses closest to where the customer wants materials shipped. I have been hearing a lot about proximity warehousing, but I get the impression these warehouses are still owned and operated by electronics distributors. Of course, a 3PL has certainly succeeded if it looks like the warehouse is affiliated with the distributor when the order is shipped.

Can anyone add some insight into this? Are these proximity warehouses generally provided by 3PLs?

 

bolaji.ojo
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Blogger
Leveraging supplier strength
bolaji.ojo   10/1/2010 7:13:29 AM
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Before manufacturers can tap the strength of a third-party support partner, there must be a realization within the executive team that doing everything alone is no longer efficient or advisable. Specialization continues to spread throughout all economic sectors and embracing the most cost-effective solutions is today critical to success. In any case, why reinvent the wheel?

If some company down the road or across the world already has the expertise and can help me shave hours, days or even weeks from my supply chain delivery period, I would be loath to turn them down as long as they are cost competitive. That's a critical issue. Will it be cost-effective comprehensively to outsource logistic operations? Oh, and by the way, how about some other concerns companies in IP-intensive areas might have, such as ensuring product security when shipping to areas of the world where the rules and oversight of corporate IP are not as tough. How do logistics companies secure customers' intellectual property interest?



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