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Global Logistics

In: Business and Management

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GLOBAL LOGISTICS

CASE STUDY

COASTAL LOGISTICS INC. ESTABLISHING THIRD-PARTY (3PL) LOGISTICS SERVICES

‘’We declare that the material contained in this project is the end result of our own work and that due acknowledgement has been given in the bibliography to ALL sources, be they printed, electronic or personal. ‘’

Contents

Introduction 2
Overview of the organisation 3
CLI’s 3PL service provision objectives 4
Main issues raised 5
1. The need for an effective and successful sales pitch 5
3. High spot-rate cost of boat leasing 6
4. Delivery route and shore base operating costs 6
5. Resource requirements for 3PL service 6
6. Establishment of a trusting and reliable partnership 7
Approaches to issues raised 8
1. “AS IS” process documentation and operation analysis 8
2. The Morgan City Benchmark Study 8
3. Cost comparison and utilization of long-term vs. spot-rate leases 9
4. 2 months, 24 hours activity log book 9
5. Drawing of support and expertise 9
6. Information sharing and in-depth study of operational and cost data .…………………………….………………………………………………….………………….…………….…………..10
Effectiveness of approach adopted 10
Recommendations 13
1. Provision of a consolidated logistics service 13
2. Delivery route and shore base operation costs 13
3. Establishment of a trusting, reliable partnership 14
4. Customer Service Audit 15
References 19

Introduction
With increasing global competition and the streamlining of the supply chain management functions of businesses, organizations now outsource parts or all of their logistic functions to Third Party Logistics (3PL) providers in an attempt to achieve operational efficiencies within the supply chain.
Specifically, 3PL service providers typically specialize in integrated warehousing and transportation services that can be scaled and customized to customer needs based on market…...

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