Question

Without plagiarizing describe how you feel about the statement below;

he logistical support needed by small companies and mid-size companies is major role in building an operational network. The shipping of goods and moving goods across international lines is a key part of doing business in the modern day. The use of a 3PL firm to support your companies business by removing a major role from your the owners plate. This is a critical role for small business owners that have little experience in this role. In utilizing a third party source for handling logistics such as UPS, FEDEX and other courier firms to handle select services for the company. The services that my company uses are international shipping and customs for our international clients in Europe. These services are one of critical performance for my business and provides a structure beyond our established network (Anonymous 4). The packaging required by our clients is different per customer and requires special packaging so that service would be lost on my company. The contract management for shipping providers to our clients overseas is managed by our third party firms. In allowing the firms to manage these aspects gives me more time to manage the customer end of the deal. The change in international laws for shipping is constant and would be a burden that I am not willing to shoulder. The prime example will be the tariffs imposed on China and the goods coming out of that country. This constant change will cause my company more of a headache than people who specialize in these issues. The need for a logistical network beyond a local area is a must for a business in the 21st century with globalization becoming even more prevalent. The need to handle logistics will change with the size of the company and can become an internal aspect of your business once the demand is great enough to justify the operational cost.

Answer 1

In modern business environment, it is always wise to focus upon the core are of business and outsource the other non-core areas to the specialized companies who can deliver the best services. In this regard, it becomes imperative for a smaller and mid-sized company to get associated with the logistics (domestic & international) service providers so that products are delivered to the customers with full safety, and on time committed to them. It will save high cost, that could incur in establishing the logistics network, manpower and other issues to come with the logistics. Further, the burden of the international laws, changing international business environment is shifted from the business to the logistics service providers. It also helps logistics company to get business and grow network in different cities, & countries. Hence, the relationship between primary business and logistics providers help each other grow and create a win-win scenario.
Though, once the business expands and business development takes place, then the businesses can slowly establish their own logistics network, starting with the few cities in the beginning and for few product categories, then expanding gradually. It will help the business, not to be the victim of the bargaining power of the third party logistics providers and in few years’ time, the business can establish its own logistics arm. It will help the business in the long run to develop its own customized delivery network.