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Supply Chain Logistics
Transcript of Supply Chain Logistics
3rd Party vs Internal
What solutions have been picked & Why?
3rd Party Logistics
Consumer demand is pressurizing the distribution sector of the Supply Chain for large multichannel retailers.
What are they demanding ?
Accurate delivery windows
Availability of products
Consistent customer service
Large Network of Resources
Saves Time & Money
-Economies of scale
Provides Expertise and Knowledge
Allows the business to focus on core competencies
Scalability & Flexibility
- Seasonal demand
Use a 3rd party Logistics Company
Create Internal Logistics
Very expensive set up
Slower delivery times
Not the companies core competency
Costs time and money in knowledge procurement
Extra costs applied in other areas
Economies of scale
Potential for expansion
Reduce overall costs
Improved supply chain co-ordination
Company dependency on logistics companies
Distribution network configuration (No of suppliers, communication etc.)
Inventory Management (WIP- work in progress)
- October 2013, 26% of UK consumer goods purchased online
- Next 12 months 41% of products will be bought online
- Online retail market will be worth £64bn in 2016 from £40bn in 2012
- "Want it, need it, wear it in just 90 minutes!" Oasis, (2014).
Able to Manage every step of the process
Better stock control and Communications
Added Customer Service
Helps keep brand identity
Last Christmas 40% of all shoppers used a collection service.
1. The operations and hardware are the same
2. They both have similar premises, equipment and software
3. Both equally affected by changes in the macro environment
1. 3PL provide logistic services to more than one company whereas in house only
provide services to one.
2. Internal logistics control their own costs.
3. In the long term internal is a better investment for companies.
How is this pressure affecting retailers?
By Alix Rogers, Anna Hunt,
Elizabeth Doyle, Lydia Westwood, Rhona Dalglish and Rosaleen Hayward
Third Party is more plausible for most companies
An internal logistics system is more beneficial in the long term
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