3 PL LOGISTICS

OVERVIEW
Define Third Party Logistic
How 3PL is different from transportation providers? Why businesses use 3PL ? Services provided by 3PL companies How to choose a 3PL for the business

The move to 4PL: what is new, what is next, changes, etc

What is 3 PL ?
Third-party

Logistics is simply the use of an outside company to perform all or part of the firms materials management and product distribution function.

Why Use 3PL?

7 Rs of logistics management
Right place Right quantity Right Service Right quality Right price Right time Right relation

CUSTOMER

OPERATIONS PERFORMED :

CHARACTERISTICS OF 3PL
Perform

outsourced logistics activities

Process
More

management / Multiple activities

customized services

Mutually

beneficial and risk-sharing relationship commitments (1~ 3 years)

Long-term

Types of 3 PL
ASSET BASED

MANAGEMENT BASED

INTEGRATED PROVIDER

Asset based third party logistics companies use their own trucks, warehouses and personnel to operate their business.

These companies provide the technological and managerial functions to operate the logistics functions of their clients, but do so using the assets of other companies and do not necessarily own any assets.

It can either be asset based or management based companies that supplement their services with whatever services are needed by their clients.

How to Select a 3PL?

Consider:

Vendor Experience in Automation and Integration.

Concurrency Billing

Consider: Consider:

Consider:
Consider:

Core Functionality
Flexibility

Benefits of 3PL :
1) 2)

3) 4) 5) 6)

The elimination of infrastructure capital and investment. Access to expertise in the logistics field to allow users to achieve supply chain solutions with their customers that minimize total delivered costs. Reduced inventory costs through improved management. Increased access to world-class resources, processes, services, and technologies. Economies of scale through sharing resources, volume shipping discounts, and increased shipment visibility. A strategic partnership with a company, whose core activity is specializing in logistics, allowing you to increase focus on your core competencies.

Continued
7)

8)

9)

10) 11) 12)

The flexibility to respond quickly to changing market trends, changing business environments, and peak periods without major disruptions to distribution operations. Operational Key Performance Indicators (KPIs) can be easily captured and reported. Real-time integration of distribution system into host system leading to accurate and timely data reporting adding value to the manufacturing and marketing operations. Improved customer service through shorter shipment times. More scalable logistics operations and total logistics costs are clearly identified. Productivity gains through logistics being managed more effectively through the application of technology.

Disadvantages and risk of 3PL

1) If services are not managed nicely, they may cause great problems for the company reputation, and firm's position.

2) According to the latest research it has been proven that communication problems between buyers and suppliers are a major cause of operation failures. 3) Supplier failure can cause major interruption to the operations of company.

Continued..
4) The main business goals and objectives of one company should not be the same as the other company in the strategic alliance between companies. 5) The outsourcing company that is using the Third Party Logistics Provider may end up losing some of the control over the operation.

Case Study

Gati Profile

Ahead in Reach

Gati pioneered the concept of Retail Express Cargo and Express Distribution in India 19 years working tenure Gati has the largest fleet of over 2100 vehicles on road, with a nation wide network unmatched in the industry Gati has connected businesses across the border Providing seamless multi modal network across road, air, rail and sea, & hold position in the Express Distribution

Important Awards:-

Ahead in Reach

1. First Logistics Company in India to be Awarded ISO -9001 certification ISO 90012000 in 1998. Frost and Sullivan Award for the Best Domestic Logistics Company in 2003. 2. Award for the Best HR Practices in Service Industry by Amity International Business School in 2005 & 2007. 3. Consumer Super Brand award in Logistics Category by Super brands, UK in 2006.

Gati Services

1.Gati Surface Express 2.Gati Air Express 3.AI Gati 4.Gati SCM 5.Gati Cold Chain 6.Gati Europe Express 7.Gati Global Express

Premium Clientele

Services Network

Distribution Network
Locations Locations serviced Delivery capability Gati Associates 414 20000 603 out of 611 Districts 970

Routes
Vehicles Vendors Handlers Weight Handled (per month)

753
1146(Own vehicles-163) 606 1500 37000 ton

 GLS serves 2,20,000 customers in Europe in 36 countries, handling 311 million parcels, has 17,800 vehicles, 32 transshipment points, employs 12,000 employees. Growing at a CAGR of 24% in the last 3 years, is expected to grow at 27% from this year.
EBIDTA Growth Chart

Case Study
AFL Logistics Others (KTSPL,TVS)

Blue dart logistics

Gati

Transport Corporation of India LTD FED-EX

DHL

AHEAD IN LOGISTICS

KTSPL Profile

Since 1992, Kandarp Tradelinks and Services Private Limited. Engaged in a business of C & F Agency in North India. Clients integrated bulk transport, freight forwarding, and logistics management services, and to be a single window end-to-end logistics solution provider. Customer Oriented and Customer Friendly

KTSPL Client List

KTSPL Services Network

Case Study
AFL Logistics Others (KTSPL,TVS)

Blue dart logistics

Gati

Transport Corporation of India LTD FED-EX

DHL

TVS Logistics Services Ltd

TVS Profile:
Chennai-based Company A part of the TVS group In logistics business since 1995 Frost & Sullivan's 2005 Voice of Customer Award In 2006, the company reported a turnover of Rs 140 crore Target is to reach Rs 500 crore by 2007-08

Services

Various aspects of transportation Warehousing Supply chain solutions Vendors Management System Value Added Services Overall capability

Recommendations:

Delfours approach :
Specific

applications within the web-enabled SmartEnterprise Suite include WarehouseLogic and SmartFreight, as well as Active Desktop and e-Vista,which furnish business activity monitoring and alerts and onewindow supply chain visibility respectively.
product capability is unique and has not been replicated by any competitor. For example, our supply chain life cycle capability, with workflow by shipper, customer and consignee, is one of our industry-leading unique characteristics.

Delfours

Continued
Another

is the ability to create user-defined inventory levels and associate certain business logic to specific levels. Features such as these enable you to map your customers standard operating procedures so closely that you can actually operate as an extension of their business.

Conclusion:
In

short, when selecting a 3PL solution, it is important to recognize that the traditional warehouse management system (WMS) and the 3PL system are simply two different things. Traditional one-site one-client solutions are optimized for certain environments, such as highly automated operations that are not feasible in a 3PL situation, where flexibility and second-to second adaptability is often required. Most importantly, when researching your next solution, know your requirements and keep looking until you find the solution that satisfies them.