| Summary: | Ocean carriers have shifted the limelight of their business from ocean transportation to logistics management. However, the boundary between logistics management and supply chain management seems to overlap each other and thus, this report aims to define supply chain management.
One needs to understand the factors behind the growing trend of outsourcing supply chain activities to third-party logistics (3PL) provider. As such, the traditional logistics player that has been providing specific services in their own areas of expertise have evolved into 3PLs offering a range of integrated logistics services.
Research into the logistics industry has shown that fundamental customer needs hinges on both performance criteria and logistical and cross-functional drivers needed to drive supply chain performance. Therefore, 3PLs need to understand their clients’ requirements to customize the supply chain solution that best serves their needs.
The transition from a mere ocean transportation provider to a 3PL providing integrated supply chain solution (ISCS) meant that ocean carriers face impending challenges. Findings from interviews with ocean-based 3PLs have revealed the common challenges faced when contending to gain a foothold in the highly competitive logistic market.
In order to succeed, ocean-based 3PLs need to benchmark themselves against the leading players in the logistic industry and adopt the best practices. In addition, they must be innovative to come up with new products and services that create the synergy to propel the organization to greater heights.
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