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The importance of customer orientation and adaptability by a third party logistics service provider to a client customers needs in the context of an international distribution operation of your choice Essay Example

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The importance of customer orientation and adaptability by a third party logistics service provider to a client customers needs in the context of an international distribution operation of your choice

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Therefore, applying 3PL can help a company to achieve competitive advantage within a highly competitive market and also help in influencing savings on logistics costs according to the research by Kannan, Haq and Kumar. The advantage that 3PL has is that it helps in outsourcing business functions that were initially conducted within an organization that used to increase operation cost and delayed delivery to the customer because the company is involved in performing other tasks. Essentially, when a company concentrates on their core competencies they are able to survive the tide of strong competition because the stress of how the finished product will get to the customer in time is no longer theirs but that of the 3PL (Schniederjans M, Schniederjans A & Schniederjans D 2007, p.Over the years, businesses have shifted from the profit-centered approach of business to the customer oriented approach in order to help their businesses to survive in a highly competitive global market. The customer-oriented approach is designed to have the needs of the customers to be the priority for a business, which in turn influences customer satisfaction (Hewing 2014, p. Authors that seek to bring out the relationship between the reduction of logistics cost and customer satisfaction and loyalty are Liu and Fang. The two authors assert that as much as a company seeks to deliver their products at the lowest possible cost through 3PL service providers, it is also important for them not to disregard the aspect of quality. The implication of this is that they should not spare any cost whatsoever when manufacturing the products so that they meet the quality standards, which is a sure way of achieving customer satisfaction and also loyalty.However, Liu and Fang (2009, p. 24) also intimate that the 3PL service providers should also uphold safety standards when transporting the goods to the customer because if any harm comes to them then the customers are highly likely not to be satisfied by the product. This can be a loss that the manufacturer did not anticipate for making the 3PL and the producer to have responsibility when it comes to product quality that has an influence on achieving customer satisfaction. Tian, Ellinger and Chen (2010) seem to be in argument with this fact as they suggest that 3PL service providers together with manufacturers should be able to give customers value for what they are willing to spend, which can influence customer satisfaction. Therefore,

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Reference

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Mital, A 2008, Cases in strategic management, N ew Delhi, Tata McGraw-Hill.

Mohanty, RP 2008, Quality management practices, New Delhi, Excel Books.

Rudolf O. Large, Nikolai Kramer, Rahel Katharina Hartmann, (2011) "Customer‐specific adaptation by providers and their perception of 3PL‐relationship success", International Journal of Physical Distribution & Logistics Management, Vol. 41 Iss: 9, pp.822 – 838

Rust, RT & Huang, MH 2014, Handbook of service marketing research, Edward Edgar Publishing.

Schniederjans, MJ, Schniederjans, AM & Schniederjans, DG 2007, Outsourcing management information systems, Hershey, PA, Idea Group Pub.

Sehgal, V 2009, Enterprise supply chain management integrating best-in-class processes,

Sheikh, Z and Rana, S 2012, Role of Third Party Logistics providers with advanced IT to increase customer satisfaction in supply chain integration, International Journal of Academic Resaearc in Business and Social Sciences, vol. 2, no. 1., pp. 540-556

Yu Tian, Alexander E. Ellinger, Haozhe Chen, (2010) "Third‐party logistics provider customer orientation and customer firm logistics improvement in China", International Journal of Physical Distribution & Logistics Management, Vol. 40 Iss: 5, pp.356 - 376

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