Importance if Third Party Logistics

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Executive Summary The performance of the logistics system has a major impact on cost structures, revenues, service quality, and competitiveness in Australian industry. Logistics activities have been evolving rapidly in response to changes such as globalization, general industry restructuring, new production processes, and technological advances. Many firms, government agencies and joint industry/government bodies are developing programs to improve logistics performance in Australia. The initiatives include the Freight Transport Logistics Industry Action Agenda. This report develops a broad framework for analyzing logistics activities in Australia. This report will also look at the importance of Third Party Logistics to the Australian business. We will also look at the emergence of the 3PL in Australia and what benefits do the businesses get by adopting the 3PL. The most significant supply chain trend that is affecting business in Australia. Introduction Ever increasing competition in today’s global markets, introduction of new products with shorter lifecycles, faster dissemination and proliferation of information and heightened expectations of customers have forced enterprises to invest in, and focus attention on, entire supply chains. Today, some companies are extending their reach outside of traditional supply chain boundaries to engage in activities that go beyond their own sphere of control. To do this, they organise competitive networks of enterprises to develop and access supply chain capabilities for those organisations that are part of such value-adding networks. The scope of this research report covers aspects ranging from in-house logistics, with a focus on productivity, cost-savings and functional excell... ... middle of paper ... ... Ellram, L.M. 1998, Fundamentals of Logistics Management, Irwin/McGraw-Hill, Boston Langley C.J. Jr. 1992, ‘The evolution of the logistics concept’, in M. Christopher (ed.), Logistics: The Strategic Issues, Chapman & Hall, London. Logistics in Australia: A Preliminary Analysis http://www.btre.gov.au/info.aspx?ResourceId=26&NodeId=22 Date Accessed 30th April 2008 Malone, P. 1999, Business to Business E-Commerce Case Study: Transport and Logistics—Australia, Presentation to the Working Party for the Information Economy Group of the OECD, National Office for the Information Economy, Canberra. Supply Chain Review 2000, Who’s Who in Contract Distribution 2000, December, vol. 9, no. 6, pp. 36-38. Toll Holdings 2000, Concise Annual Review 2000, Toll Holdings, Melbourne.

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