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The benefits and the challenges of outsourcing the logistic function

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The benefits and the challenges of outsourcing the logistic function
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.

1.0. Introduction

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.

1.1 Introduction 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



References: Anton, J. and Petoufoff, N. 2002 Customer Relationship Management – The BottomLine To Optimizing Your ROI. 2nd Ed. New Jersey: Pearson Education Prentice Hall Bowen, D.E., and Lawler, E.E., III. (1992, Spring). The empowerment of service workers: what, why, how, and when. Sloan Management Review. Vol.33. Customer Relationship Management and UPS (2007a). [Online]. Available: (http://www.crm-toolkit.com/CustomerRelationshipManagementUps.html). Customer Relationship Management and UPS (2007b). [Online]. Available: (http://www.crm-toolkit.com/CRMTool.html). Smith, A.D. (2002). Loyalty and e-marketing issues: Customer retention on the Web. Quarterly Journal of E-commerce, 3(2): 149-161. Smith, A.D. (2005c). Exploring service marketing aspects of e-personalization’s impact on online consumer behavior. Services Marketing Quarterly, 27(2): 89-102. Smith, A.D. and Offodile, O.F. (2007). Exploring forecasting and project management characteristics of supply chain management. International Journal of Logistics and Supply Management, 3(2): 174-214. Van Hoek, R.I. and Chong, I. (2001). Epilogue: UPS Logistics - practical approaches to the e-supply chain. International Journal of Physical Distribution & Logistics Management, 31(6): 463-464. UPS e-commerce (2007). [Online]. Available: (www.ec.ups.com).

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