Question

  Instructions:

   Read the topic “Supply Chain Management” from your desired sources and write the answer   

   keeping an eye on the given below important points:

                                                                                                                                                                           

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Q. Analyze critically that under what circumstances might a company want to use Supply

     Chain Services in Logistics Management from a third party?                                                                                                                           

                                                                                                                                

    Although it largely depends on students creativity but answer KEY points should be included:

!-ships small packages occasionally

2-cost of shipment

3-delivery time

4-package pick-up time

5-customer preference

6-price of good and reliability of the carrier

7-dependability

Answer 1

Answer:

Circumstances under which a company wants to use Supply chain services in Logistics management from a third party: The supply chain services are very essential service for the organization as these starts from the suppliers and ends at the customers. The supply chain services basically the involvement of logistics and transportation and warehousing. These are special type of services and they had different type of competencies associated with them.

The key reasons for outsourcing these services are as below

• Ships small packages occasionally: Requirements are not large that the self own supply chain services can be employed. Many times it had happens that small packages are required to be dispatch. Thus the outsourcing is easy as it will cost based on weight only and it will not cost for keeping the set-up at the plant levels.
• Cost of shipment : The cost of shipment may be high if we have our own set up for the supply chain services, as we do run or not, the cost will be keep on running. But in case of outsourcing supply chain services, it will cost only when we will be sending the material. Cost of shipment will be optimized for the organization.
• Delivery time: The third parties have multiple customers and have large set-up and multiple branches which have adequate coverage in the given markets. Thus they can deliver the material in less time and we may required larger time in delivery by our own service set-ups due to lack of complete coverage in the region.

• Package pick-up time: The package pick up times can be any time as per the schedule of the plant, but in our own services we will be doing it once per day. But third party can do pick-ups at any time in the day or nights as they have multiple transportation and they are lined up in the day/night.
• Customer preference: The third party supply chain systems have customer preferences as well. Customer prefers to have their common party as the supply chain partner so that it will be easy for them to manage the show.

• Price of good and reliability of the carrier: the pricing of good and reliability of carrier is appropriate. There is balance between the goods price and the reliability of the career so that the costly item reaches safely to the destination.

• Dependability : Due to lot of benefits from the third party supply chain services, these are very common supply chain services in the market and demonstrated high dependency to their customers. Customers can depend on this services and can rely on them.