Session 4 Flashcards
(15 cards)
What is the definition of LSPs?
All companies that provide logistics services.
LSP stands for Logistics Service Providers.
What does 3PL stand for and what services do they offer?
3PLs (Third-Party Logistics) = LSPs offering integrated logistics services such as:
* Warehousing
* Transportation
* Pick and Pack
* Light manufacturing
* Customs clearance
* Vendor-managed inventory
* Reverse logistics
* Trade financing
3PLs integrate multiple logistics services to enhance efficiency.
What is the definition of 4PLs?
Total supply chain integrators, managing multiple 3PLs to deliver end-to-end solutions.
4PLs focus on comprehensive supply chain management.
What trend is observed in transport operations related to outsourcing?
Companies are shifting from own-account transportation to third-party services, creating more LSPs.
What is the ‘Platform Economy’ in logistics?
Digital platforms (e.g., Freightos) enable transparency, visibility, and easier access to logistics services (Virtual Forwarders).
What does ‘unbundling FedEx’ refer to?
Tech startups disrupt traditional logistics by breaking down full-service offerings into specialized services.
Name three top 3PL companies by revenue (2020).
- DHL – $27.3B
- Kuehne & Nagel – $25.9B
- Nippon Express – $19.9B
What is DB Schenker’s strategy focus?
Innovation, digitalization, and becoming a leading integrated logistics provider.
What is contract logistics?
Outsourcing logistics functions like warehousing, order processing, inventory management, and some customer service.
What is a 4PL according to Accenture’s definition?
A supply chain integrator that assembles and manages internal and external capabilities to deliver comprehensive supply chain solutions.
What criteria should be considered when choosing an LSP?
Consider the following:
* Services offered
* Costing method
* Transit speed & reliability
* Insurance and documentation
* Technology & information systems
* Core vs value-adding services
* Reverse logistics capabilities
* Provider reputation and references
Which LSP would you choose based on speed, cost/sustainability, or balance of services?
Depends on priorities:
* Speed = SpeedyShip
* Cost/Sustainability = EcoMove
* Balance of services = ReliableLogix
Why is procurement considered strategic in supply chain management?
It affects cost, risk, supplier availability, and long-term supply chain resilience. Strategic procurement supports sustainability and innovation.
What are the roles in logistics procurement?
Roles include:
* Buyers: Ensure competitive sourcing
* Category Managers: Source by category (e.g., logistics)
* SRM: Manages supplier relationships for long-term collaboration
What are modern procurement practices/tools?
Modern practices include:
* Digital maturity evaluation
* Strategic sourcing
* Use of data analytics
* Ethical practices (sustainability, safety, emissions)
