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Submitted to:
Mr. Zeeshan Khan
Group Members:
Junaid Khalid
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14157
Anam Sabar
Natasha Nasir
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Dated: 09-Jan-2015
Question # 1
Outsourcing, in general, has been a hot topic in worldwide business for the past several years.
And the debate only heats up when the outsourcing discussions start focusing on supply chain
functions.
One of the most important reasons why companies outsource their logistics functions is the need
to decrease the number of warehouses, vehicles and excess inventories and to reduce shrinkage,
and labor costs. Such moves bring down fixed and working capital investment. Companies can
therefore focus on their core business activities and share the risks.
lease their own ships, or airlines that are contracted to use their passenger flights to transport air
freight from origin A to destination B.
emerging trend and it is a complex model and offers greater benefits in terms of economies of
scale.
Uses
Most small businesses buying and selling in the same location are 1PL. As the Business expands
geographically, the manufacturers logistics border grows, a 2PL provider is generally a
commodity capacity provider, such as a trucking company or a warehouse operator, a 2PL
provides service for a single or a small number of functions in the supply chain. They face low
returns, with high levels of asset intensity but low barriers of entry. Next come the distributors,
who through a dense network or legislative protection have achieved higher returns, albeit on a
sizeable cost base. Examples are the express parcel operators that charge premium pricing for
timely delivery, and the postal operators.
With the increasing demand for one-stop solutions, many 2PLs have evolved into 3PLs by
adding new logistics capabilities and integrating their operations. It may or may not involve asset
ownership. 3PL is a broader term that is frequently used to cover businesses in freight
forwarding or contract logistics. It performs all or a large portion of a clients supply chain
logistics activities and its value adding is based on information and knowledge versus a non
differentiated transportations service at the lowest cost. 3PL tends to be asset light with high
returns. The 4PL provider is essentially a logistics integrator or a one-point contact for the
manufacturers logistics outsourcing requirements.
They are responsible for contracting various 2PL and 3PL providers, and for assembling and
managing those end-to-end solutions. The 4PL provider, with its complete overview of the
supply chain as well as strong logistics and IT capabilities, can also offer high value added
advisory services to the manufacturer.
Examples
1PL or First Party Logistics: A First party logistics provider is a company or an individual that
need a product to be transported from a point A to a point B.
Example: Company A needs its product to be transported to the company B. They are both 1PL.
2PL or Second Party Logistics: A Second party logistics provider specializes in one particular
area of the supply chain, usually transporting goods from one point to another. This company
owns the means of transportation.
Example: Company A delivers companys B merchandise with its own means of transportation,
Company A is a 2PL. DHL or UPS are 2PL.
3PL or Third Party Logistics: A Third party logistics provider is a company that can be used to
satisfy most or all the logistics needs of a company. Things that can be outsourced are
transportation, warehousing, packaging, distribution and so forth. 3PL companies usually hold
and transport goods without actually owning them.
Example: Company A outsources part or all its logistics to a Company B which takes care of the
whole process. Company B is a 3PL. Agility Logistics is a 3PL.
4PL or Forth Party Logistics: A Fourth-party logistics provider dont necessarily provides
logistics services itself but rather gives advice and solutions to other companies regarding their
logistics. This service might include the use of multiple 2PL and 3PL providers to build and run
the most successful supply chain solutions
Example: Company A advises Company B to use Company C for their supply chain and logistics
needs, Company A is a 4PL. For example Deloitte and Accenture are 4PL.
Question #2
PAK STEEL MILL CONVEYOR BELT
The Longest Conveyor belt system in Pakistan
Conveyor Belt Weighing Scales (Online weighing of raw materials Transported through
conveyor be transported through conveyor belts. Maximum weighing capacity is 1000 capacity
is 1000tones/hours.) Tones/hours.)
Conveyor belt of Pak Steel Mill has a start from Pak Steel which is Point A and its unloading
point where the conveyor belt ends is PORT QASIM which is Point B. Length of conveyor
belt system in Pak steel mill is almost 80 km