Date of Submission
WHAT IS 3PL FIRMS?
The business environment has grown to be dynamic and competitive; hence, the ventures
have resorted to better ways of defining its operational strategies. Most of the firms are shifting
from local to international markets, posing stiff competition. The area of priority in the global
markets is the supply chain management. Felea and Albastroiu, pp.3-5, define supply chain
management as an alignment of Companies that deliver goods or services to the market. They
include; retailers, wholesalers, and intermediaries from which the consumers access the
commodities. Thus, this assignment focus on illustrating mechanisms employed by firms through
third parties to carry out certain functions on their behalf to be visible and competitive in foreign
Outsourcing and offshoring
The two are basic terms used in the management of supply chains by various Companies
and organizations. Outsourcing has gained momentum due to stiff competition in business both
at the local and international markets. It can be achieved through a contract when a firm or
organization obtains goods or services from an external supplier (Schoenherr, pp.343-378). The
organizations utilize external suppliers to procure. A firm may resort to outsourcing in areas
where it is limited in skills and technical expertise for a specific task—for example, hiring the
powers of a competent person who can maintain the quality standards to give the organization
advantage over other firms.
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