SUPPLY CHAINMANAGEMENT

3PL

APPLEBELLEJUSTIN

HOWARDSARAH

3PLs Market Grows Rapidly

U.S. 3PL Market 1996-2013E (US$ Billions)86% of domestic Fortune 500 companies use 3PLs for logistics and supply chain functions

the Global Fortune 500 3PL market at $250.2 billion, a 67% increase since 2005

What is 3PL?

A third-party logistics provider is a firm that provides service to its customers of logistics services for part, or all

of their supply chain management functions. Third party logistics providers typically specialize in integrated operation,

warehousing and transportation services that can be scaled and customized to customers' needs based on market conditions and the demands and delivery

service requirements for their products and materials.

A BC

Role of 3PL

• Video: How Third Party Logistics (3PL) fits in the Supply Chain

3PLsInbound

OutboundInventory mgtDistribution

Order/Return

Manufacturers

Suppliers

DistributorsRetailers

Consumers

Raw materialaccessories

Informationmoney Product

Customized Design

customized to customers' needs based on market conditions and the

demands and delivery service requirements for their products and

materials

Partner Relationship

Logistic TechnologyTransportationTechnology

WarehousesTechnology

HandlingTechnology

PackagingTechnology

DistributionTechnology

InformationTechnology

GIS

GPS

EDI

Barcode

Radio Frequency

OPERATIONALBENEFIT

ECONOMIC BENEFIT

MANAGIRALBENEFIT

STATEGICAL BENEFIT

Value Creation

3PL CASE

• DHL named from the first letters of the last name of the 3 founders.

1. We want to simplify the lives of our customers2. We make our customers, employees and investors more successful3. We make a positive contribution to the world4. We always demonstrate respect when achieving our results

MISSION

Adrian Dalsey Larry Hillblom Robert Lynn

LogisticsFreight transportation, warehousing and distribution, supply chain solutions

we cover it all. That's why we are the world's largest logistics specialist.

Freight Transportation Warehousing and Distribution Customs, Security & Insurance

Supply Chain Solutions Industry Sector Solutions Customer Resource Area

Highlights of the services of DHL

Fast and Easy Online Shipping

Easy Tracking

One Single Sign-on for EverythingConvenient and Fast Credit Card Payment

Manage Your Profile

Video: DHL Lead Logistics Provider video

Q1.Why do you think that large companies are more inclined to outsource than smaller ones ?

• do not waste time training staffs• reduce overhead cost • reduce administrative burden

• Work with professional staffs• increase efficiency of the

company performance

5 Reasons to Use a 3PL Provider

Resource Network

Save Time and Money

ExpertiseScalability

and Flexibility

Continuous Optimization

• lower overhead and the fastest possible service

• To grow into new regions without barriers

3PL in large and small

– High investment in• trucks• Staff training• Administration and

management– Many channels for

distribution– long distance

transportation(Overseas Trade)

– No needs to use many trucks, many staffs

– Not many channels for distribution

– Short distance transportation

– Not enough financial resources

>> can manage by themselves>> should hire outsource

• Large companies • Small companies

Q2.How important is technology in 3PL decision?

Why do you think this is ?1. Integration with Your Systems

2. Reliable Inventory Counts

3. Information at Your Fingertips

•ensure accuracy of orders to your customers•using bar code scanning technology that further reduces error rates

• to make the best decisions possible for your business• operate at the highest of levels for your business

Than

k you

for y

our a

ttention

Q & A