ASSIGNMENT | Benefits and Limitations of Third Party Logistics Providers

What are the benefits and limitations of: third party logistics providers (3PLs); water transportation, and pipelines?

SAMPLE SOLUTION

Benefits and Limitations of 3PLs Providers
In Logistics, 3PLs firms specialize in managing some or all aspects of business’s logistic operations including freight audit and consulting, inventory management, reverse logistics, transportation contracting, materials procurement, warehousing, shipment tracking and tracing, as well as providing value added services (Scolari, 2018). 3PLs may be single providers like in transportation or in warehouse storage or may be involved in the management of the entire supply chain. For a business to have a comprehensive delivery workflow, a 3PL has to be integrated within a business’s transportation operations and warehouse management. Using water transportation and pipelines as third-party logistics can have myriads of advantages and disadvantages.
Advantages
Third party logistics reduce the costs associated with maintaining the warehouse, payroll, taxes, workers’ insurance, cargo insurance, as well as reducing manufacturers’…