Business Finance
Saudi Electronic University Third Party Logistics Firms Discussion

Saudi electronic university

Question Description

Need help with my Management question - I’m studying for my class.

NO PLAGIARISM

The Answer should be 3- 4 pages in length including the cover page and reference.

The Answer must follow the Key word/ outline points below:

  • Outsourcing ,offshoring ,Third Party logistics
  • Their Main functions
  • Motivational Factors /Drivers
  • Any local example
  • Reasons with suitable Examples
  • Reference

Note: You can support your answer by reading chapter 4 of your book.

You can use secondary source available on internet. Please use APA-style referencing.

  • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
  • Submissions without this cover page will NOT be accepted.

Unformatted Attachment Preview

College of Administrative and Financial Sciences Assignment 2 Deadline: 28/03/2020 @ 23:59 Course Name: Logistics Management Student’s Name: Course Code:MGT322 Student’s ID Number: Semester: II CRN: Academic Year: 1440/1441 H For Instructor’s Use only Instructor’s Name: Students’ Grade: Level of Marks: Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. Assignment: 2 Submission Date by students: Before the end of Week- 10th Place of Submission: Students Grade Centre Weight: 10 Marks Learning Outcome: 1. Demonstrate an understanding of how global competitive environments are changing supply chain management and logistics practice. 2. Apply essential elements of core logistic and supply chain management principles. 3. Analyze and identify challenges and issues pertaining to logistical processes. Assignment Workload: This assignment is an individual assignment. Critical Thinking In today’s highly competitive, extremely variable and really dynamic environment, many firms are seeking solutions. Supply chain management becomes more sophisticated and the difference between what firms want to achieve and what they can do in-house continues to grow, firms begin to realize that doing the right thing becomes more interesting than doing everything. Accordingly, they are becoming better focused and more specialized by outsourcing and offshoring activities that are far from their core businesses. In many cases firms decide to outsource this function in whole or in part to agents or third party logistics firms. Using this concept of offshoring and outsourcing answer the following questions by taking any Saudi Local company or any Multinational company. Question: 1. What are Third party logistics firms? 2. Explain the motivational factors for going internationally? 3. On what ground companies choose developing countries location for offshoring? Use examples. (Mention the country and decisive factors) 4. Assess the reasons for using third party logistics service in Saudi Arabia? Using examples, Explain The Answer should be 3- 4 pages in length including the cover page and reference. The Answer must follow the Key word/ outline points below: • Outsourcing ,offshoring ,Third Party logistics • Their Main functions • Motivational Factors /Drivers • Any local example • Reasons with suitable Examples • Reference Note: You can support your answer by reading chapter 4 of your book. You can use secondary source available on internet. Please use APA-style referencing. Answer 1. Answer 2. Answer 3. Answer 4. References. Logistics Management ‫إدارة الخدمات اللوجستية‬ Logistics and supply chain ‫اللوجستيك وسلسلة االمداد‬ Alawi Alshakhouri 140069328 Key issues 1 What is supply chain, and how is it structured? ‫ماهي سلسلة االمداد وما هو هيكلها‬ 2 What is the purpose of a supply chain? ‫ما هو الغرض‬ ‫من سلسلة االمداد‬ ‫الموردين الى المصنعين الى الموزعين الى نقطة البيع او المتجر الى المنزل‬ The Supply Chain Concept ‫مفهوم سلسلة االمداد‬  Development of the Concept ‫تطور المفهوم‬ – Total systems cost - remains an important element of logistics analysis. ‫نظام التكلفة اإلجمالي ال يزال عنصرا هاما في تحليل التوريد‬ – Outbound logistics – the warehousing and distribution of finished goods. ‫ التخزين و توزيع السلع الجاهزة‬:‫الخدمات اللجوستية الصادرة‬ – Inbound logistics – the receiving and warehousing of raw materials, and their distribution to manufacturing as they are required. ‫ المستلمة والمخزنة للمواد الخام وتوزيعها‬: ‫الخدمات اللوجستية الواردة‬ ‫الى المصانع حسب طلبهم‬ – Value chain analysis integrated logistics activities. ‫تحليل سلسلة‬ ‫القيمة ينمج مع نشاطات التوريد‬ ‫‪Business Logistics in a Firm‬‬ ‫االعمال اللوجستية في الشركات‬ ‫من نقطة المواد الخام الى تخزين المواد الخام الى المصنعين الى تخزين السلع الجاهزة الى‬ ‫السوق‬ ‫التوزيع المادي الصادر‬ ‫التوريد المادي الوارد‬ The Supply Chain Concept ‫مفهوم ادارة سلسلة االمداد‬  A supply chain is a group of partners who collectively convert a basic commodity (upstream) into a finished product (downstream) that is valued by end-customers, and who manage returns at each stage. ‫سلسلة اإلمداد هي‬ ‫مجموعة من الشركاء الذين يقومون جماعيا بتجميع سلعة أساسية ( صعوديا ) إلى‬ ‫ والذين يديرون العائدات في‬،‫منتج نهائي (نزوال) والذي يقيم من المستهلك النهائي‬ .‫كل مرحلة‬ Definition Planning and controlling all of the processes that link partners in a supply chain together in order to serve needs of the end-customer. ‫تعريف‬ ‫ التخطيط والتحكم بجميع العمليات التي تربط الشركاء‬:‫سلسلة االمداد‬ .‫في سلسلة التوريد معا من أجل خدمة احتياجات العمالء النهائيين‬ Supply chain: structure and tiring ‫ الهيكل والتدرج‬:‫سلسلة التوريد‬ The process starts with several external suppliers that move milk, cardboard, and plastic to the processing plant. After the milk is processed and packaged, it is delivered to retailers, who sell it to customers. The alternative delivery system is delivery from a warehouse directly to customers’ homes. ‫تبدأ العملية مع العديد من الموردين الخارجيين الذين‬ ‫ينقلون الحليب والكرتون والبالستيك إلى مصنع‬ .‫المعالجة‬ ‫ يتم تسليمه إلى تجار‬،‫بعد معالجة الحليب وتعبئته‬ ‫ نظام التسليم البديل‬.‫ الذين يبيعونه للعمالء‬،‫التجزئة‬ .‫هو التسليم من مستودع مباشرة إلى منازل العمالء‬ Supply chain: structure and tiering ‫ الهيكل والتدرج‬:‫سلسلة التوريد‬ Supply chain can be fairly complex. The supply chain for a car manufacturer includes hundreds of suppliers, dozens of manufacturing plants (for parts) and assembly plants (for cars), dealers, direct business customers, wholesalers, customers, and support functions such as product engineering and purchasing. ‫سلسلة التوريد يمكن أن تكون معقدة إلى‬ ‫ وتشمل سلسلة التوريد لمصنعي‬.‫حد ما‬ ‫السيارات مئات الموردين وعشرات‬ ‫المصانع (لألجزاء) ومحطات التجميع‬ ‫(للسيارات) والتجار وعمالء اعمال‬ ‫مباشرين وتجار الجملة والزبائن ووظائف‬ .‫الدعم مثل هندسة المنتجات والمشتريات‬ Logistics concept ‫مفهوم التوريد او اللوجستيك‬ The task of coordinating material flow and Definition information flow across the supply chain. .‫مهمة تنسيق تدفق المواد وتدفق المعلومات عبر سلسلة التوريد‬ Logistics management is that part of supply chain management that plans implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements. ‫إدارة التوريد هو ذلك الجزء من إدارة سلسلة التوريد التي تخطط‬ ‫ والتحكم بكفاءة وفعالية إلى األمام والعكس في تدفق وتخزين السلع والخدمات والمعلومات ذات‬،‫األدوات‬ .‫الصلة بين نقطة المنشأ ونقطة االستهالك من أجل تلبية متطلبات العمالء‬  the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security. ،‫ والنقل‬،‫ والمخزون‬،‫ والتعبئة والتغليف‬،‫ واإلنتاج‬،‫ التعامل مع المواد‬،‫دمج تدفق المعلومات‬ .‫ واألمن في كثير من األحيان‬،‫والتخزين‬ Key issue 1 What is the relationship between material flow and information flow? ‫ماهي العالقة بين تدفق المواد و المعلومات‬ Integrated Logistics Management ‫اإلدارة اللوجستية المتكاملة‬ ‫تدفق المواد ‪Material and information flow‬‬ ‫والمعلومات‬ ‫المصادر معلومات الطلب‪:‬‬ ‫‪ -1‬الشحن‬ ‫‪-2‬التجديد‬ ‫‪ -3‬البيع‬ ‫‪ -4‬الطلبات‬ ‫من المصنع شحن الى المخزن ثم إعادة تنصع‬ ‫الى نقطة المبيعات ثم تباع للمستهلك النهائي‬ Material and information flow ‫تدفق المواد والمعلومات‬ Material flow ‫تدفق المواد‬ Information flow ‫تدفق المعلومات‬ Key issues 1 How do products win orders in the marketplace? ‫كيف تكسب‬ ‫المنتجات الطلبات في السوق‬ 2 How does logistics contribute to competitive advantage? ‫كيف يسهم اللوجستيك في الميزات التنافسية‬ Creating logistics advantage: three basic ways :‫لخلق ميزة تنافسية هناك ثالث طرق‬ time quality Logistics advantage cost ‫ الجودة‬-1 ‫ الوقت‬-2 ‫ التكلفة‬-3 Creating logistics advantage: controlling variability ‫التحكم بالتغييرات‬  Variability undermines the dependability with which a product or service meets target. .‫يقوض التغيير والتقلب مدى قابلية المنتج أو الخدمة لتحقيق الهدف‬ Order winners and order qualifiers ‫طلب‬ ‫الرابحين وطلب المؤهلين‬ Different logistics performance objectives ‫أهداف أداء الخدمات اللوجستية المختلفة‬ Order winners ‫الطلب الفائز‬ are factors that directly and significantly help products to win orders in the marketplace. Customers regard such factors as key reasons for buying that product or services. ‫هي العوامل التي تساعد بشكل مباشر‬ .‫وكبير المنتجات للفوز في أوامر في السوق‬ ‫يعتبر العمالء عوامل مثل األسباب الرئيسية لشراء‬ .‫هذا المنتج أو الخدمات‬ Order qualifiers ‫طلب‬ ‫المؤهلين‬ are factors that are regarded by the market as an ‘entry ticket’. Unless the product or service meets basic performance standards, it will not be taken seriously. ."‫هي العوامل التي يعتبرها السوق بمثابة "تذكرة دخول‬ ‫ فلن‬،‫ما لم يفي المنتج أو الخدمة بمعايير األداء األساسية‬ .‫يؤخذ على محمل الجد‬ The value chain: Linking supply chain and business strategy ‫ ربط سلسلة التوريد‬:‫سلسلة القيمة‬ ‫واستراتيجية األعمال‬ Business Strategy Supply Chain Strategy New Product Strategy New New product Product Development Development Marketing Strategy Marketing Marketin Operations and g Operations Distribution and sales Sales Service Finance, Accounting, Information Technology, Human Resources How to Achieving Strategic Fit‫كيف تحقق استراتيجية مالئمة‬  Understanding the Customer ‫فهم العميل‬ – Lot size ‫احجام مختلفة‬ – Response time ‫وقت االستجابة‬ Implied Demand ‫الطلب الضمني‬ – Service level ‫مستوى الخدمة‬ – Product variety ‫تنوع المنتجات‬ – Price ‫السعر‬ – Innovation ‫االبتكار‬ How to measure? Uncertainty ‫الشك‬ Levels of Implied Demand Uncertainty ‫مستويات الطلب الضمني و الشك‬ High Fashion ‫موضة عالية‬ Detergent ‫مواد منظفة‬ Price ‫السعر‬ Low ‫أقل‬ Customer Need ‫احتياج العميل‬ Responsiveness ‫االستجابة‬ Implied Demand Uncertainty ‫الطلب الضمني الغير مؤكد‬ High ‫اعلى‬ Understanding the Supply Chain: Cost-Responsiveness Efficient Frontier ‫ استجابة التكلفة كفاءة الحدود‬:‫فهم سلسلة التوريد‬ Responsiveness ‫االستجابة‬ High Low High Low Cost ‫التكلفة‬ Achieving Strategic Fit ‫تحقيق استراتيجية مالئمة‬ Responsive supply chain ‫استجابة سلسلة التوريد‬ Responsiveness spectrum ‫طيف االستجابة‬ Efficient supply chain ‫كفاءة‬ ‫سلسلة التوريد‬ Certain demand ‫طلب مؤكد‬ Implied uncertainty spectrum ‫طيف عدم اليقين‬ ‫الضمني‬ Uncertain demand ‫طلب غير مؤكد‬ Strategic Scope Suppliers Manufacturer Distributor Competitive Strategy Product Dev. Strategy Supply Chain Strategy Marketing Strategy Retailer Customer Drivers of Supply Chain Performance ‫برامج تشغيل اداء سلسلة االمداد‬ Competitive strategy ‫االستراتيجية التنافسية‬ Responsiveness Efficiency ‫االستجابة‬ ‫ الفاعلية‬Supply chain strategy and structure ‫سلسلة االمداد وهيكلها‬ Inventory ‫المخزون‬ Transportation ‫المواصالت‬ Facilities ‫المرافق‬ Drivers ‫البرامج التشغيلية‬ Information ‫المعلومات‬ Considerations for Supply Chain Drivers ‫االعتبارات او اهمية مشغل سلسلة االمداد‬ Driver Efficiency Responsiveness Inventory Cost of holding Availability Transportation Consolidation Speed Facilities Consolidation / Proximity / Dedicated Flexibility What information is best suited for each objective Information Chapter 2 Putting the endcustomer first ‫وضع العميل النهائي أوال‬ Alawi Alshakhouri 140069328 Content The marketing perspective ‫منظور التسويق‬ Segmentation ‫التقسيم‬ Quality of service ‫جودة الخدمات‬ Setting logistics priorities ‫وضع األولويات اللوجستية‬ The marketing perspective ‫منظور التسويق‬ • Key issue 1 What are the marketing implications for logistics strategy? ‫ما هي اآلثار التسويقية لالستراتيجية اللوجستية؟‬ The marketing perspective ‫منظور التسويق‬ • Marketing is a philosophy that integrates the disparate activities and functions that take place within the network. Satisfied [end] customers are seen as the only source of profit, growth and security. (Doyle,1994) • ‫التسويق هو فلسفة تدمج األنشطة والوظائف المختلفة التي‬ ‫ وينظر لرضى العمالء النهائين‬.‫تحدث داخل الشبكة‬ )‫ (دويل‬.‫باعتبارهم المصدر الوحيد للربح والنمو واألمن‬ The marketing perspective ‫منظور التسويق‬ The Challenge… ‫التحدي‬ Customer The challenge Increased sales and market shares ‫زيادة المبيعات وأسهم السوق‬ Strong brand Increased productivity ‫زيادة اإلنتاجية‬ Short lead times The marketing perspective ‫منظور التسويق‬ The battleground is the customer’s wallet. .‫ساحة المعركة هي محفظة العميل‬ The victors will be those that can order their entire organization around the challenges of getting cheaper more profitable and more loyal customers. ‫وسيكون المنتصرون هؤالء الذين يمكن أن يطلبو من منظمتهم بأكملها حول تحديات الحصول على أرخص و أكثر‬ ‫ربحية وأكثر عمالء موالون‬ It’s an age of expert buyers. Customers are becoming ever more critical and demanding. .‫ العمالء أصبحت أكثر نقدا من أي وقت مضى وتطالب‬.‫انها عصر المشترين الخبراء‬ Customers know that they can play the market and are placing higher and higher demands on suppliers to give them what they want – and immediately. ‫العمالء يعرفون أنهم يمكن أن يلعبو في السوق ووضع مطالب أعلى وأعلى على‬ .‫ وعلى الفور‬- ‫الموردين لمنحهم ما يريدون‬ ‫منظور التسويق ‪The marketing perspective‬‬ ‫زوجان من المفاهيم ‪• Two pairs of concepts‬‬ ‫من المستهلك الى التاجر والعكس ‪B2C:‬‬ ‫من الموزع الى المصنع او من الناقل ‪B2B:‬‬ ‫الى المصنع او من المصنع الى التاجر‬ ‫‪business customer‬‬ ‫عمالء االعمال‬ ‫‪Vs.‬‬ ‫‪B2C‬‬ ‫‪end-customer‬‬ ‫العميل النهائي‬ ‫‪B2B‬‬ ‫‪Consumer‬‬ ‫المستهلك‬ ‫‪B2B‬‬ ‫‪B2B‬‬ ‫‪Vs.‬‬ ‫‪Customer‬‬ ‫العميل‬ The marketing perspective ‫منظور التسويق‬ • Rising customers expectation ‫ارتفاع توقعات العمالء‬ 1 better levels of general education ‫ومستويات أفضل من‬ ‫التعليم العام‬ 2 better ability to discern between alternative products ‫قدرة أفضل على‬ ‫التمييز بين المنتجات‬ ‫البديلة‬ 3 Exposure to more lifestyle issue in the media ‫استعراض نمط حياة‬ ‫أكثر في وسائل‬ ‫اإلعالم‬ The marketing perspective ‫منظور التسويق‬ • The information revolution ‫ثورة المعلومات‬ Industry structure ‫هيكل الصناعة‬ internet Buyer-supplier relationship ‫المورد‬-‫عالقة المشتري‬ Purchasing, SCM and NPD ‫ إدارة سلسلة التوريد‬،‫شراء‬ Segmentation ‫التقسيم‬ • Key issue 1 What is segmentation, and what are its implications to logistics strategy? ‫ما هو‬ ‫ وما هي آثاره على استراتيجية الخدما ...
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Final Answer

Attached.

Introduction
Third party logistics firms, their pros, and cons
Paragraph 1
- Third-party logistics firms offer operational services to firms.
- Operational logistics vary from one firm to another and include warehousing,
distribution management, inventory forecasting, and freight consolidation, among others
Paragraph 2
- The primary driver for most businesses is profitability.
- Firms venture into international markets in their quest to optimize their profitability
Paragraph 3
- Uncertainty is inevitable in business.
- Every business faces the risk of being elbowed out of the market by changes in
consumer tastes and preferences
Paragraph 4
- Economies of scale is also a motivating factor for expanding into international markets.
- The sustainability of a firm partially hinges on its ability to leverage economies of scale
Paragraph 5
- Proximity to a ready market is also a critical motivation for venturing internationally.
- If a form is strategically located close to an international border, it makes sense for it to
expand to the neighboring country


Running head: THIRD PARTY LOGISTICS

1

Third Party Logistics
Name
Institution

THIRD PARTY LOGISTICS

2
Third Party Logistics

Third party logistics firms
Third party logistics firms offer operational services to firms. Operational logistics vary
from one firm to another and include warehousing, distribution management, inventory
forecasting, and freight consolidation, among others (Batarliene and Jarasuniene, 2017). Thirdparty logistics (3PL) serve as an intermediary between the manufacturer and various stakeholders
from customers, suppliers, retailers, and distributors. Akman and Baynal (2013) posit that 3PLs
can be divided into six broad categories based on their areas of specialty- transportation,
warehousing, forwarding, shipping, financing, and information-based. According to Etokudoh et
al. (2017), 3PLs serve to allow firms to focus on their core activities. Some of the benefits
accruing to firms from using 3PL services include cost reduction, improved customer experience,
risk mitigation, and flexibility. The cons of using these services include diminished control over
distribution, substantial initial capital requirement, and loss of direct contact with stakeholders,
which could compromise feedback.
Motivational factors for expanding internationally
The primary driver for most businesses is profitability. According to Omokaro-Romanus,
Anchor and Konara (2019), firms venture into international markets in their quest to optimize
their profitability. Some global markets have immense profit potential, which draws firms
offering specific categories of goods and services. For example, emerging economies offer
unlimited profit potential for construction companies, retail services, and in this era of
technological advancement, e-commerce businesses. Foreign firms providing any of these
services could venture into these markets to exploit the vast potential. Early entry into emerging

THIRD PARTY LOGISTICS

3

economies is also critical because it gives these entrants a head start that could allow them to
dominate the market for a long time, which is highly lucrative.
Uncertainty is inevitable in business. Every business faces the risk of being elbowed out
of the market by changes in consumer tastes and preferences. Different entities have various
techniques for managing this risk. The quintessential approach to this problem is diversification.
In this light, companies are moti...

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