Description
Explanation & Answer
View attached explanation and answer. Let me know if you have any questions.
Question1: Defines third party logistic firms and its working procedures.
Question2: Analyzes on some of the motivational factors to companies going
internationally.
Question 3: Gives a description of choosing developing nations for offshoring.
Question 4: Gives a description of why companies outsource.
Question 5: Gives reasons for using third party logistic services in Saudi
Kingdom of Saudi
المملكة العربية السعودية
Arabia
وزارة التعليم
Ministry of Education
الجامعة السعودية اإللكترونية
Saudi Electronic
University
College of Administrative and Financial Sciences
Assignment 2
Answer 1. Define Third-party logistics firms? Discuss its working procedure?
(400-500 Words)
Third-party logistic firms are economic entities used to outsource business elements of
distribution, such as distribution and logistics associated with the supply chain. The third-party
logistic firms thus specialize in working on behalf of companies to ensure that consumer demand is
met. There are several advantages through which companies gain from third-party logistics. It is vital
to note that through logistics, companies are in a better position to manage various aspects of their
supply chain with limited costs (Sahu et al., 2015).
For the third-party logistics to work, the companies set up measures to manage transportation
for their clients for both inbound and outbound services. In a significant way, the companies own
warehouses that they can quickly lease to their clients for a given period. Several times, the thirdparty firms do not even own the given carries but rather lie with the freight of trucks to run their
operations.
The warehouses have been defined to ensure that they can speed up the processes for other
businesses. This aspect is critical in setting up the business to ensure they are in the best position to
perform in the given market (Adiweno et al., 2015). Companies do not have to own the warehouses
but instead, use the warehouses to store their products. The warehouse operators will then develop
means to ensure that the products reach the intended market target. The third-party logistic services
thus come up with aspects that ensure that the range of services is provided. It is vital to note that
there is a platform for integrating the given services. Freight shipping and receiving are other aspects
of the warehouse processes. Through the logistics, the companies can thus receive and ship the
products while ensuring that they set up a system managing the given inventory.
Several companies in Saudi Arabia are significant examples of third-party firms. Other
companies can easily source for their logistics to be conducted through the given firms, which goes a
long way in ensuring that the given businesses indeed benefit from the shared arrangement. Some
third-party logistics serv...