Podcast
Questions and Answers
What is own-account transportation?
What is own-account transportation?
Freight carriers generally offer door-to-door service.
Freight carriers generally offer door-to-door service.
False
What type of service did couriers become popular for in the 1980s and 1990s?
What type of service did couriers become popular for in the 1980s and 1990s?
Transportation of valuable documents.
A freight forwarder is a _______ in the shipping process.
A freight forwarder is a _______ in the shipping process.
Signup and view all the answers
Match the following logistics service providers with their descriptions:
Match the following logistics service providers with their descriptions:
Signup and view all the answers
Which of the following is an example of a freight integrator?
Which of the following is an example of a freight integrator?
Signup and view all the answers
Freight forwarders usually maintain their own network of vehicles and planes.
Freight forwarders usually maintain their own network of vehicles and planes.
Signup and view all the answers
What is the primary advantage of using freight integrators for customers?
What is the primary advantage of using freight integrators for customers?
Signup and view all the answers
A non-vessel operating common carrier (NVOCC) does not own its own _______.
A non-vessel operating common carrier (NVOCC) does not own its own _______.
Signup and view all the answers
Which of the following logistics services primarily focus on the transportation of valuable documents?
Which of the following logistics services primarily focus on the transportation of valuable documents?
Signup and view all the answers
What role does an NVOCC play in ocean transport?
What role does an NVOCC play in ocean transport?
Signup and view all the answers
All logistics service providers (LSPs) can be classified as third-party logistics companies (3PLs).
All logistics service providers (LSPs) can be classified as third-party logistics companies (3PLs).
Signup and view all the answers
What is one of the typical services provided by a 3PL?
What is one of the typical services provided by a 3PL?
Signup and view all the answers
A company that offers total outsourced supply chain solutions is known as a _____ logistics provider.
A company that offers total outsourced supply chain solutions is known as a _____ logistics provider.
Signup and view all the answers
Match the following logistics concepts with their descriptions:
Match the following logistics concepts with their descriptions:
Signup and view all the answers
Which of the following is a service provided by typical 3PLs?
Which of the following is a service provided by typical 3PLs?
Signup and view all the answers
Fifth-party logistics (5PL) is a well-defined concept referring to all logistics service providers.
Fifth-party logistics (5PL) is a well-defined concept referring to all logistics service providers.
Signup and view all the answers
In what year did Accenture trademark the term fourth-party logistics (4PL)?
In what year did Accenture trademark the term fourth-party logistics (4PL)?
Signup and view all the answers
3PL services can include _____ management, which involves repairs and returns.
3PL services can include _____ management, which involves repairs and returns.
Signup and view all the answers
Which of these industries is primarily suited for 5PL solutions?
Which of these industries is primarily suited for 5PL solutions?
Signup and view all the answers
Study Notes
Logistics Service Providers
- Logistics services have grown in scale and scope recently
- Own-account transportation involves a company providing its own transport services internally. Many companies no longer handle all their logistics internally.
- Companies increasingly use logistics service providers (LSPs)
Classifying Logistics Service Providers (LSPs)
- Freight carriers transport large packages, often not offering door-to-door service. Examples: trucking companies, trains, airlines.
- Couriers gained popularity in the 1980s and 1990s, specializing in transporting valuable documents and products quickly (often door-to-door). Examples include mail services.
- Freight forwarders act as intermediaries, arranging deliveries using multiple carriers and couriers. They benefit from a wide network of vendors and are flexible. However, they rely on passenger air traffic, so fluctuations can affect their ability to take on a job. Costs are a sum of elements like pickup, handling, shipping and delivery. Example: Agility.
- Freight Integrators own and operate their own fleet, handling the entire process from pickup to delivery. They manage the logistics with expert management, providing a scheduled network. Example: FedEx, UPS, DHL.
- Non-Vessel Operating Common Carrier (NVOCC) ocean carriers that provide services without owning their own vessels. They act as intermediaries, leasing or renting space from larger shippers and reselling it to smaller shippers. This facilitates transport for smaller businesses.
LSPs versus 3PLs
- There's significant overlap between LSP categories.
- Some companies that operate ships also handle freight forwarding, and all logistics providers fall under LSP.
- Many freight companies have developed broader services and are now known as third-party logistics (3PL) providers.
Typical 3PL Services
- Transportation via multiple modes.
- Warehousing and storage capacity.
- Picking and packing multiple SKUs into shipments.
- Light manufacturing on behalf of OEM's.
- Vendor-managed inventory, customs clearance.
- Trade financing, currency exposure management.
- Reverse logistics, handling repairs and returns.
- Parts distribution and managing critical spare inventories.
- Inventory management.
Top 20 Global 3PLs (2019)
- A list of the top 20 global 3PL companies by revenue in 2019. DHL Supply Chain and Global Forwarding was at the top with 27302 revenue(in millions). This list includes companies like DHL, Kuehne + Nagel, Nippon Express, DB Schenker, etc.
Fourth-Party Logistics (4PLs)
- Fourth-party logistics providers (4PLs) offer total supply chain solutions.
- They act as integrators, managing resources of their organization along with complementary service providers.
- They outsource the entire supply chain, including tech integration, monitoring and planning.
- The distinction between 3PL and 4PL is becoming increasingly blurred.
Fifth-Party Logistics (5PLs)
- Fifth-party logistics (5PLs) represent recent types of LSPs, using technology solutions across complex networks, including multiple supply chains.
- Suitable for ecommerce companies.
Selecting LSPs and Services
- Key considerations in selecting an LSP include:
- Services required
- Costs and costing approach
- Carriage terms (Incoterms) and insurance
- Speed and transit time
- Performance metrics and reliability.
- Information systems, documentation
- Core versus value-added services
- Staffing issues, reverse logistics
- Implementation details, provider history, client references.
- Digitisation and end-to-end supply chain transparency.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the various types of logistics service providers and their roles in modern transportation. Learn about own-account transportation, freight carriers, couriers, and freight forwarders, and understand how companies are shifting to external logistics solutions. This quiz covers key concepts in logistics and supply chain management.
