A key to successful corporation with third-party logistics provider is organized steps that have to be taken in order to select and communicate with potential vendors. There are few models and techniques which help to choose a 3PL. Jharkharia and Shankar (2007) have used the analytic network process (ANP), but Jayanthi, Kocha & Sinha (1999) and Parkan and Wu (1998) have used operation competitiveness rating (OCRA) when choosing 3PL. Yung, Selen, Sum & Huo (2006) have used analysis of variance (ANOVA), which helps to measure financial performance of 3PL, Min and Joo (2006) have used data envelopment analysis (DEA), which benchmarks the efficiency. All models and methods mentioned above are mathematical; therefore do not comply with Rotterdam Business School Master in Logistics Management studies, which mean they cannot be used in this thesis. Steps needed to take when selecting and evaluating suppliers (Handfield, Monczka, Giunipero & Patterson, 2011): • Identify supplier evaluation category; • Assign a weight to each evaluation category; • Identify and weigh sub-categories; • Define scoring system for categories and sub-categories; • Evaluate supplier directly; • Review evaluation results and make selection decision; • Review and improve supplier performance continuously. Each step has to be taken carefully and considerately. The more precise selection process goes the biggest possibility to choose the most appropriate 3PL for the company needs. These authors have made models and criteria for choosing supplier and 3PL, but all methods can be applied also to choosing 3PL, as selection process and criteria can be changed and adapted. According to Cross (1995) good 3PL selection decisions may lead to lower costs and in... ... middle of paper ... ...rom my friend who works in logistics field and has access to logistics companies in Baltic States. E-mails were sent to 14 logistics companies asking few questions about their experience and opinions about shipping to Russia, questions can be seen in appendix 6, received answers only from 2 people whom I know personally and have worked together previously, which can be seen in appendix 6. E-mail was sent to Embassy of Russia in the Netherlands asking also about logistics to Russia and asking if could arrange a meeting, after not receiving an answer, phone calls were made and response was to wait for written answer. It was impossible to contact Russian shipping companies and clients because they do not have webpages or their legal name and brand name is different. I got a chance to contact one of them afterall with an e-mail in Russian, did not receive any answer.
W.C. Benton, Jr., 3rd Edition, “Purchasing and Supply Chain Management.” (2010). Text. 2.
Suppliers must also have technical expertise and product innovation, be proactive in reducing costs, maintain the highest quality standards, and be willing to build long-term relationships (Volvo Group, 2014). This trust is an integral part of the supply chain since Prevost relies on consistent on-time deliveries of quality parts from its suppliers so that it is able to complete its chassis and shell builds.... ... middle of paper ... ... a.
Metalcraft’s scorecard was developed to address control issues in the supply-chain. The scorecard was a tool that provided Melalcraft a single reference point on supplier performance over a period of time along three dimensions: quality, timing and delivery. There were several business functions that utilized the scorecard; buyers, plant engineers, supplier development engineers, suppliers and various other users within the Metalcraft organization. The scorecard was also used to evaluate supplier performance at both the individual plant level as well as the aggregate supplier level. The scorecard classified supplier performance metrics with color recommendations indicating the degree in which Metalcraft would base future sourcing based on their “color” quality rating.
Burt, D., Petcavage, S., & Pinkerton, R. (2010). Purchasing descriptions and specifications. In Supply management (p. 129). New York, NY: McGraw-Hill/Irwin.
Selecting the right procurement route can have a direct impact on the level of success to a project. There are various items that must be factored before making a decision including: size of the project,
Russia, spanning 11 time zones and serving as home to about 150 million people, possesses tremendous natural and human resources. Demand today for imported consumer goods, capital equipment, and services remains remarkably strong, with imports representing an unusually large percentage of the national market. Despite outstanding long-term market potential, Russia continues to be an extremely difficult country in which to do business.
Hum,Sin Hoon (2000), “A Hayes-Wheelwright framework approach for strategic management of thrid party logistics services”,Integrated Manufacturing Systems,Vol .11/2,pp 132-137
Since mid-90, technology changed procedures for evaluating supplier’s relationships. Before technology, Suppliers relationships used to be an isolated activity disconnected from others companies’ activities highly influenced by conflict of interest. But when technology started to provide accurate data, companies begin the focus on inventory management activities increasing the importance of procurements departments’ evaluation as a way to reduce supply chain cost. With data, procurement can evaluate suppliers and their benefits for the company. In today business environment, the company dilemma is evaluating if the supply chain should be vertical, full outsourced of mix, considering industry maturity impact and price competition (Chopra & Meindl, 2007; Slack & Lewis, 2011).
4) Coyle J.J & Bardi E.J. & Langley C.J. 2003, “The Management Of Business Logistics- A Supply Chain Perspective” 7th ed, Thomson Southwestern Learning, Louiseville, Canada
Quickly becoming apparent after only a few rounds of play was in the absence of coordinating direction the individual supply chain links immediately focused upon acting in their own best interests much more so than the organization as a whole. Whether the end use customer was satisfied became secondary to avoiding stock outages for the next link in the chain, or their specific “upstream customer”. The real world application of this example is that focus on the end use customer must be consistent and maintained throughout the process up to and including delivery. Undoubtedly internal customers, such as retailers to wholesalers and distributors to production, must be serviced along the way for the transaction to ultimately occur. However, unless an end use customer is involved no profit can be realized by anyone.
Purchasing process is the process of buying the right material, at the right quantity, at the right moment, at the right price and from the right supplier ( Heinritz et al, 1986). It can also be defined as the way an organisation behaves towards it suppliers, as suppliers are the pillar of strength for all organisations at large. According to We...
People tend to realize the importance of logistics only when there is a problem; but the fact is that logistics plays a critical and indispensable role in the achievement of the objectives of all corporate entities, whether
(2014) deduced that procurement performance can be assessed by focusing ondelivery,flexibility, quality, cost and technology. Optimal performance attainment is dependent onhow current suppliers`relationships aremanaged so asto ensure constant availability of needed quality supplies at the organization. This will ensure that sourced materials are indeed procured at the right costand atthe right time. Procurement performancestrives toenable improvements in the procurement process at the organizationso as to improve on qualitydelivery of firm products and servicesatleast possible time and
Global Sourcing is the method of sourcing from the global market across geographical boundaries for goods and services. As competition between industries increases, the importance and role of purchasing has similarly enlarged. As today’s companies’ effectiveness is directly connected to the competitiveness of their supply base, hence many businesses have carried out global sourcing strategy to gain access to the best supplier’s potential. According to Trent and Monczka, global sourcing helps companies to access the best suppliers in the world. Companies that have successfully implemented global sourcing have proved cost savings. However, it also gives other benefits such as quality, availability of resources and overcome competition.
Step 6, evaluation and selection of a supplier: the evaluation stage of the process could involve the p...