LSCM

EFFECT OF THIRD PARTY LOGISTICS ON MANUFACTURING SECTOR

ABSTRACT
These days 3PL has emerged as global phenomenon or as a means to deliver products efficiently with maximum cost benefit. This paper covers all the aspects because of which manufacturing companies are going for 3rd party logistics whether it is the focus on core competency or cost reduction. Now the effect of this move is sometimes companies loose on the service part, moreover the major drawback is that the control on whole supply chain is reduced .This paper clearly entails the importance of 3PL followed by areas catered ,advantages ,disadvantages and value added to manufacturing sector by incorporating 3PL. It also deals in detail the crucial issues of initial “gap” between manufacturers and 3PL providers followed by the changing mindset and scenario of logistics field. At last paper discusses about the future of 3PL ie. 4PL. Here the data was collected through secondary analysis on the input and output variables and that in turn was used to establish impact of usage of 3PL services on business performance .

This Research paper has been completed with due help from Mr. Alok Srivastava