Business Finance
Saudi Electronic University Third Party Logistics Firms Questions

Saudi electronic university

Question Description

Help me study for my Management class. I’m stuck and don’t understand.

Critical Thinking

In today’s highly competitive, extremely variable and really dynamic environment, many firms are seeking solutions. Supplychainmanagementbecomesmore sophisticatedandthedifferencebetweenwhat firmswanttoachieveandwhattheycando 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.


  • What are Third party logistics firms?
  • Explain the motivational factors for going internationally?
  • On what ground companies choose developing countries location for offshoring? Use examples. (Mention the country and decisive factors)
  • 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

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

Thank you for working with me . Hope I can help you with more questions in the future. Bye for now!


Third Party Logistics Firms
Institutional affiliation




Third Party Logistics Firms
Outsourcing includes a practice where a business hires an external party for the
performance of services as well as the creation of goods that the company previously performed
in-house by employees. Companies could select to outsource their services offshore, near-shore,
and on-shore to reduce cost and increase flexibility for changing economic and business
conditions. On the other hand, offshoring is the action to outsource operations overseas to reduce
the cost of operation. In most circumstances, it occurs among firms from the developed countries
to developing nations due to low labor costs or favorable tax regulations, among others. Thirdparty logistics firms refer to outsourced organizations that provide services related to the
management of a specific or all parts of the transportation and logistics operations. They are also
responsible for the execution of warehousing, freight management, and transportation activities.
The implication is that a 3PL firm is responsible for the management and coordination functions
to ensure efficiency in the supply chain as well as better transportation. One of the reasons for

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