Global Logistics Coursework Example | Topics and Well Written Essays - 2250 words

Global Logistics - Coursework Example Third party logistics are often used for global supply chain executions. The reason why the Japanese company needs to outsource logistics is to reduce the cost, improve distribution service and concentration on its core competencies. The company strategy largely determines how formulation, evaluation and execution of third party logistics will take place. (John E Mello) Factors that primarily effect third party logistics outsourcing are cost and quality of service provided. Since the company requires multiple services, the first thing this company will consider is the ability of the logistics provider to provide all these services efficiently. The company will look at the logistics providers resources because the services required here go beyond typical storage and distribution and also include assembling and receiving orders. To satisfy all these needs, the third party logistics should have the technical expertise and the manpower besides a transportation system and storage place. The first step in outsourcing will be the research and evaluation of all service providers. The company will analyze service providers and look at their experience. The company should have meaningful experience and a clear track record without being involved in any deceptive activities or maintaining low standards of service. Any such findings will immediately disregard that 3PL company as it will risk damaging the company reputation. The service provider who has prior experience of custom clearance activities, storage, assembly and distribution of electronics will be given the top priority. The second thing to consider is the cost and the added value outsourcing will be bringing to the company. Price is a major factor as the reduction of cost and responsibility is what the company is looking for. Therefore the company will choose from companies which provide their services well within the going market rate but not below that without compromising