Catalysts for Outsourcing Trends

Today, business organizations across the world are struggling to compete not only for growth but mere survival. The factors responsible for this are the liberalized economies of countries across the world, globalization of businesses and recessionary trends in the markets. Moreover, the customer has become more demanding and is looking more for value-added services

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Benefits of Logistics Outsourcing

In a logistics operation considerable quantities of materials are required to be transported and stored at various locations. Raw materials and components are to be moved over long distances from vendor supply points to production centres. Starting from outsourcing of IT and HR functions, Indian corporations have come a long way and understood the

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Third-Party Logistics

The trend of using a strategic partnership in integrated logistics has now become an accepted practice in the industry. These partners are called “third party service providers” or 3PL (short for third-party logistics) firms. These firms are external to the company and provide one or more aspects of their entire logistics service product portfolio.

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Fourth-Party Logistics

IT industry is playing a major role in logistics and supply chain management. Today, the integra­tion of logistics, which is a complex exercise, is totally dependent on the support of IT. Third-party logistics suppliers are providing logistics solutions to their clients, based on their experience and domain knowledge that they have acquired and developed

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Selection of Service Provider

The decision on the selection of the service provider is a strategic one and it has long-term effects on the customer service capabilities of the organization. In the Indian context, majority of corpora­tions still have a traditional outlook and want to perform all management functions by themselves, without losing control over any of the

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Value-Added Services of Logistics Outsourcing

Due to stiff competition for differentiation in the logistics industry, the service providers are now offering their clients some additional services, besides the regular logistic service offerings. The addition covers a whole gamut of specialized and customized processes, which are available to the customers. Some of the value addition functions are discussed below. Cross-Docking

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Logistics Service Contract

Corporations are outsourcing logistics operations to 3PL or 4PL firms to obtain cost and service benefits for building competitiveness. In addition to this, the other expectations are value addi­tion in customer value delivery process, diversion of risk and reduction of liabilities. The service supplier has to organize assets, add manpower, hire facility on lease

Critical Issues of Logistics Outsourcing

After liberalization of the Indian economy in 1991, entrepreneurial activities in India grew mani­fold. Many foreign companies began their trading activities on the Indian soil to get a share of the large, untapped Indian market. As a result, the heat of competition is being felt across all sectors of the economy. To counter competition,

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Value Proposition of Logistics Outsourcing

Logistics service providers help a business corporation to achieve two goals: to reduce operating cost and to increase revenue. As the service provider organizes the required logistics assets, the investment in owning the logistic assets on the part of customer is reduced. This in turn allows the firm to invest in more productive activities

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A New Way of Shop and Pay

The progress in technological innovations has totally changed the way business is done in the industry. Traditionally, shopping or buying has been a personalized behavior of the consumer. From the days of trading and bartering till recently, the buying and selling activities were typically performed within the limitations of time and space boundaries. However,

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E-Commerce: Requirements on Logistics

E-commerce is a new way of shop and pay. The customers are large in numbers and buy only a small quantity with each transaction. This results in the accumulation of a large number of small packets for delivery to customers unknown to the seller. In e-commerce, the demand in shipment is unpre­dictable. The suppliers

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Logistics – The Backbone of E-Commerce

E-commerce has revolutionized the way business is done and the way goods are sold and deliv­ered to the customer. Logistics plays a vital role in delivering the products to individuals with speed and complete order flexibility. The logistics solutions are provided by the companies— manufacturing or dot-com—operating in the B2B or B2C domain, wherein

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E-Logistics Structure and Operation

A firm desirous of offering goods on the Internet needs to develop a proper infrastructure for elec­tronically integrating all the operations of logistics in order to ensure customer satisfaction before, during and after the buying process. 1. Order Processing The customer, after opening the website, may select one or more items for purchasing. Many

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Logistics Resource Management

Logistics resource management (LRM) is a new IT tool providing browser-based software for automating, planning, managing and optimizing the e-commerce logistics activities. It is a plat­form for the command and control of logistics execution, which can also operate as a central clear­ing house of logistics data to meet a variety of other decision-making needs

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Role of Technology in Logistics

Technology is playing a major role in the operational effectiveness and efficiency of various func­tional areas of the management. Information technology helps in real-time information processing and analysis. Due to robotics and automation technologies repetitive operations can be done with great speed and accuracy. On the communication front, the ease and speed in connectivity

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Automatic Identification Technology in Logistics

Automatic Identification (Auto-ID) is the term used to describe the direct entry of data or infor­mation in the computer system, programmable logic controllers or any microprocessor-controlled device, without operating a keyboard. Auto-ID includes such technologies as bar coding, radio frequency identification (RFID), data communication, magnetic strip, and voice recognition. The usage of these technologies

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Communication Technology in Logistics

Communication, either oral or written, has a very crucial role in business success. Here are a few emerging communication technologies which, through speed and accuracy in communication, are enablers to superior customer service leading to competitiveness. 1. Electronic Data Interchange EDI is a new emerging technology used for transfer of business documents from one

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Automated Material Handling in Logistics

The warehouse is the major area of material handling in logistics and also a prime consumer of labour. The labour force is required for loading, unloading, storing, picking and packing of materials. This is a major cost component in the warehouse expenses. Hence, there is scope for automation in material handling, which reduces the

Warehouse Simulation in Logistics

The decision on warehouse design and material-handling equipment to be installed is strategic in nature. If an organization is committing resources to build a warehouse of a specific design with automated material-handling facility, it is necessary to define the most suitable design configura­tion. With the warehouse simulation model, the different scenarios can be tested

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Information Technology in Logistics

Many corporations are looking to improve their investment returns by finding new ways to cut cost and increase profitability. With IT coming out with new products every now and then, corporations are finding it easier to implement programmes to fulfil their objectives. The two most recent IT tools that are supporting logistics are ERP

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