The Logistic Services Provider
Essay by simon_agrba • November 27, 2013 • Essay • 568 Words (3 Pages) • 1,524 Views
1) Describe the various services provided by logistics service providers. What is the role of these services in focal firms' value-chain activities?
It is difficult to imagine without trade today. However two centuries ago trade was something rare and undesirable for people. A small number of guilds were travelling around continental Europe and United Kindom from fair to fair looking for new buyers. They surely can be called fathers of international trade and place their contribution on the history map. With evolvement of international trade in our life the need for transportation arised. It is obvious that at the time of our lovely guilds the need for logistic services was not something understandable due to trust issues. However in modern societies trade is more then same continent state consideration but global exchange of goods and services. The need in low transportation cost and increase in international trade were the locomotive of logistics providing companies. Transfer the product or from one place to another is the basic principal of logistics providers. They make globalization possible for MNEs as well as for SME. Actually the effect of logistics companies is bigger for globaly born and small companies that for big MNEs ( in big company there is generaly a special logistics department). Logistics organizations provide an oportunity to international firms in the sence of outsourcing value-chain activities. Throught providing a cost effective means for delivering cargo virtually anywhere in the world, as well as providing distributor functions such as warehousing, inventory management, order tracking, and overall supply chain management services logistic companies provide an efficient results. Global demand is on the road to deeper markets where consumers demand specialized products and services. So the value chain need adapt offering services which suitable for new needs with the efficient cost.
2) Supply-chain managment has evolved over time, largerly due to globalization and technological advantage. What does the future hold? Can you anticipate changes to the supply chain that would further alter the express and logistics industry?
The supply chain management is simply management of the flow of goods. It consists of the movement and storage od raw materials, finished goods etc. from point of origin to consumption point. Global supply chains pose challenges regarding both quantity and value. It includes: globalization, increased cross border sourcing, collaboration for parts of value chain with low-cost providers,shared service center for logistical and administrative functions. Globalization and technological improvement make it easier for supply-chain activities to scale and be more efficient in the global arena. With the faster logistic services and specialized demand we will observe the increase in supply-chain management which will be a targeting oriented. The faster supply-chain activities
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