Impact of Third Party Logistics on the Supply Chain Management

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

Declaration

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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TABLE OF CONTENTS

Acknowledgementii

Declarationiii

Chapter 1: Introduction5

Background of the Study5

Problem Statement6

Significance of the Study7

Chapter 2: Literature Review8

Academic Justification8

Third- Party Logistics9

Supply Chain Management Strategies9

Research Questions10

Chapter 3: Methodology11

Introduction11

Classification of research methods11

Primary Sources11

Quantitative Data Analysis12

References13

Chapter 1: Introduction

Background of the Study

The research study is based on the logistics management and the supply flexibility that helps in improving the performance of the company. The supply chain process implies the execution of the management process throughout the company (Eisenhardt, 2007, 25). It includes the execution of the financial, physical and networks information in order to regulate the movement of funds, materials and the linked information by following the complete process of logistics. The process of logistics involves movement of several items from one place to another (Cetinkaya, 2011, 78). From the attainment of raw materials till the delivery of the end products to the final users, the process of logistics is applicable (Bell, 2007, 45). However, the supply chain management includes several other functions such as communication with the vendors, coordination with the service providers, customers and with the intermediaries (Selviaridis, 2007, 125).

The impact of the third-party logistics on the supply chain management is an important one. The hiring of the third party to provide the logistic services is an important decision for the company as it can cast different impacts on the company. The outsourcing of the transporting service is the important function that affects the efficiency of the company (Lai, 2008, 104).

The third party logistic services are rendered by the companies usually when it is unable to perform the previously performed function due to some reasons. The company can out source any kind of activities related to the logistics and was previously performed by the company itself. If the company hires the external services of logistics for transporting any kind of its goods and services, then it will be considered as the third-party logistics. The business of logistics is one of the emerging operations in the world that is considered to be very profitable (González, 2007, 901).

Problem Statement

The third party logistic services are rendered by the companies usually when it is unable to perform the previously performed function itself due to some reasons. The company can out source any kind of activities related to the logistics that was previously performed by the company itself. If the company hires the external services of logistics for transporting any kind of its goods and services, it is subject to availing the services of the third-party logistics (Ballou, 2003, ...