Transition Mode from Freight Forwarder to 3PL Logistic Company for Headwin

Executive Summary

In the research study, we have analyzed the impact of third party logistics on the supply chain management process in the case of Headwin. The third party logistics greatly impact the supply chain process by affecting the flow of products from the supplier to the consumers eventually. The process of Supply Chain Management includes the flow of product, the flow of information and the flow of financial information. Headwin has maintained an excellent global agency network enabling to provide supply chain management solutions and NVOCC services to customers around the world. If the management of the logistics performs its function effectively, it can allow the company to achieve greater profits in the future. There are associated different advantages with the effective third party logistics. The advantages of the third party logistics include improvements in the efficiency of labor, increase in the efficiency of the IT, improvement in the customer's satisfaction and the effective implementation of the supply chain management systems. The various traditional logistics enterprises are facing the pattern of re-shuffling; the traditional logistics enterprises transform themselves towards the 3PL logistics enterprises. Similarly, Headwin is a traditional freight forwarder company, and it has to find a way to transit themselves to 3PL logistic company. The objective of this report is to contribute resources to Headwin for transition from the traditional freight forwarder to 3PL, successfully. The research is based on the questions that “What are the main sources of company's income,” “What service and how valued the company will bring to the customers”, “How the company can continuously provide the valued service.” This paper has taken around 5 months in investigating and studying Headwin Company's critical condition. The research is divided into seven parts. The first part consists of company's analysis to understand the current situation of the company in order to transform it into 3PL successfully. In the second part, a survey has been done to decide the target customers. The research results show that FMCG (Fast moving consuming goods), automotive, computer and electronics and the construction industries will be the main targets. In the third part, another survey has been conducted to determine and enhance the aspects of services for the company to satisfy the customers and win the marketing strategy. The fourth part firstly describes the intense competition in the logistics company, and then uses Headwin to put into the market to help them win the markets. Next, methodology is discussed followed by data analysis. In the last part, the establishment of logistics network put the customers to improve customers' services and quality will be the only way for Headwin successfully transition to 3PL logistics and finally survive in the market. The hiring of the third party to provide the logistic services is an important decision for the company as it can cast varying impacts on the company. The outsourcing of the transporting service is the important function that affects the efficiency of the ...