The benefits and the challenges of outsourcing the logistic function

Topics: Customer service, Service, Customer Pages: 13 (4101 words) Published: April 30, 2014
Choose an organisation known to you:
1.Describe all the activities to the logistic function.
2.Discuss how the logistic function contribute or can contribute to achieve the corporate objectives. 3.What are the benefit and challenges of outsourcing the logistic function to 3PL 0r 4PL service providers.


Today’s business is more global than ever before. Markets are everywhere and new ones are sprouting up every day. Suppliers shift, supply chains adapt. Customers are more discerning and demanding. And logistics has become the new and most powerful force in business. Logistics is the art and science of getting things exactly where they need to be and when they need to be there. It’s how you reach out to new customers and new markets. Business is more global than ever. Markets are everywhere and new ones are opening up constantly.

1.1Introduction of the Company
Company History (UPS “the Company”)
Founded in 1907 as a messenger company in the United States, UPS has grown as a corporation by clearly focusing on the goal of enabling commerce around the globe. Today UPS, or United Parcel Service Inc., is a global company with one of the most recognised and admired brands in the world. As the largest express carrier and package Delivery Company in the world, we are also a leading provider of specialised transportation, logistics, capital, and e-commerce services. UPS and the power of logistics can help businesses expand its global reach with express delivery options to more than 220 countries and territories worldwide. In fact, UPS delivers faster worldwide from the U.S. than any other shipper. And since every business is unique, the company offer an extensive range of services designed around your schedule and budget. Everything from UPS Global Freight Services with guaranteed time-in-transit options to UPS Worldwide Express with guaranteed morning delivery times to our economical UPS Worldwide Saver. More than moving items from A to B, the new logistics from UPS streamlines processes before, during and after to eliminate waste and improve efficiency. Efficiency creates opportunities — to save time, to cut costs, to be more sustainable, to get more done. Every organisation has to move materials. Manufacturers have factories that collect raw materials from suppliers and deliver finished goods to customers; retail shops have deliveries from wholesalers; a television news service collects reports from around the world and delivers them to viewers. L

ogistics is the function responsible for all aspects of the movement and storage of materials on their journey from original suppliers through to final customers.

Logistics manages the flow of inputs from suppliers, the movement of materials through different operations within the organisation, and the flow of materials out to customers (as shown in Figure 1). Moving materials into the organisation from suppliers is called inbound or inward logistics; moving materials out to customers is outbound or outward.

Source, Author.

1.2Activities and contributions to achieve corporate objectives UPS understands the art and science of logistics, from the big picture to the small details. With access to the world’s largest integrated delivery network, as well as our proven technology and know-how, stakeholders can rely on UPS. Outlined below are the key activities required to facilitate the flow of a product from point of origin to point of consumption. Customer service

Customer service has been defined as "a customer-oriented philosophy which integrates and manages all elements of the customer interlace within a predetermined optimum cost-service mix. Customer service is the output of the logistics system. It involves getting the right product to the right customer at the right place, in the right condition and at the right time, at the lowest total cost possible, Good customer service supports customer satisfaction, which...

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