Business Logistics: Third-Party Logistics Providers and Balanced Scorecard

BUSINESS LOGISTICS 1
BUSINESS LOGISTICS
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BUSINESS LOGISTICS 2
Table of Contents
Question 1........................................................................................................................................3
The need for third-party logistics providers................................................................................3
The concept of Balanced scorecard 3PL service providers.........................................................3
Aims and objectives of the laptop manufacturer.........................................................................3
Measure and targets of Laptop manufacturers.............................................................................4
Strategic objectives necessary for the development of a balanced scorecard..............................4
Main logistics activities carried by 3PL......................................................................................6
Question 2........................................................................................................................................6
Enhancement of Customer satisfaction using the gaps model.....................................................6
Question 3........................................................................................................................................9
Environmental challenges Faced by international furniture retailer’s logistic services..............9
Recommendations......................................................................................................................11
Reference list.................................................................................................................................13

BUSINESS LOGISTICS 3
Business Logistics
Question 1
The need for third-party logistics providers
According to studies, most successful companies have outsourced their logistics and
supply chain operations from third party logistics providers (Jayaram & Tan, 2010, p.263). Also,
there has been increasing competition in the current world market. Therefore, outsourcing
logistic services have provided an alternative method of sustaining in the competitive edge.
Additionally, companies and organization have adopted outsourcing method intending to
maximize their profits.
Findings show that third-party logistics service providers offer many services that enable
business organizations to outsource some of their routine logistic operations and other supply
chain management functions (Zacharia, Sanders & Nix, 2011, p.43). Third party providers
provide transportation, warehousing, and other detailed services such as inventory management.
Also, outsourcing provides many significant functions such as inventory management,
performance management, labeling and packaging, transportation, warehousing, fleet operation,
product marking, order management, distribution of products, cross-docking, freight payment,
and logistic information system. This gives an organization or a company a better opportunity to
concentrate on significant operations and maximize their profits.

BUSINESS LOGISTICS 4
The concept of Balanced scorecard 3PL service providers
Aims and objectives of the laptop manufacturer
The concept of Balanced Scorecard is very significant at defining the aims and objective of the
company. Therefore, it helps a company to achieve a balance between customer’s satisfaction
and employee’s satisfaction with the expected financial outcomes. Thus, the organization has
developed various metrics about the expected outcomes that it aims to achieve. Laptop
manufacturers major aim is to meets customer’s satisfaction, at the same time attain better profit
margins (Rajesh at el., 2012, p.271). Therefore, they implement the concept of balanced
scorecard to achieve a balance between the two. Consequently, the BSC has assisted the laptop
manufactures to meet high customers depend and at the same time, attain better financial
outcomes.
Measure and targets of Laptop manufacturers
Studies reveal that the concept of Balanced scorecard facilitates the use of financial and
non-financial measures of performance about a particular industry or company (Forslund, 2012,
p297). There it allows a company to examine its strategic objectives through evaluation of a
balance between the companies for perspective. These perspectives are; customers, financial,
internal learning process, and the internal business process.
Laptop manufactures examines a balance between the four BSC perspective to
determines its position and targets. According to studies, the company has worked with other
organization to attain a balance and hit its target in the global market. In the current world,
laptops, demand is raising a higher rate due to an increase in their use. According to recent
statistics, more than 2 million laptops are bought every day in the global market. Therefore,