Description
1. What are 3PL firms?
2. Assess the reasons for using third party logistics service in Saudi Arabia? Using examples, Explain
3.Reasons why third party logistics arrangement are not always successful?
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LOGISTICS MANAGEMENT
1
Logistics Management
Student’s Name
Institutional Affiliation
Date
LOGISTICS MANAGEMENT
2
Logistics Management
Over the decades, a trend has developed in logistics firms especially in the way they run
their day to day activities. Outsourcing through Third Party Logistics (3PL) firms is an emerging
trend. Globus Logistics situated in Saudi Arabia is a good example of the companies that are
currently outsourcing through 3PL firms. Logistics companies find it crucial to outsource through
3PL firms for effective competition with similar firms. The paper discusses into details the role
that Third Party Logistics firms play in logistics companies. The paper narrows down to a specific
company, Globus Logistics, to help us have a better understanding of 3PL firms.
It is important to understand what Third Party Logistics (3PL) firms are. 3PL firms are
institutions that provide outsourcing services to logistics companies and thus saving the logistics
firms from the burden of having to transport and store their own products. Services offered by
3PL firms are more of managerial in nature as they mainly relate to fulfillment and procurement
tasks. 3PL firms may be single providers or providers who offer multiple services. Single providers
mainly offer storage and transportation services. On the other hand, providers who offe...