Proposing the Solutions of Outsourcing Third Party Logistics in Marine Industry - Dissertation Example

It is widely believed that improvement in logistics has direct and positive effects on the profitability and competitive advantages of an organization that’s why most of the organizations give crucial importance to the issues related with logistics and keep them among the top priority issues for their management. The businesses always look towards the way through which they can minimize the cost of different operations and functions and for logistics also, the firms strive to dig out the ways that can minimize the cost and work effectively.

(Aghazadeh, 2003, p57)There are many advantages that the businesses get after hiring the services of 3PL providers and the outsourcing of different logistics services has become very common in different industries of the world. With no exception, the marine industry also looks towards the third-party logistics provider to gain a variety of benefits from their services (Sink et al, 1996, p46). The third-party logistics provider can perform different functions for the marine industry like the marine transportation to the vessel for the marine company, private boat transport arrangements etc.

The growing importance of third-party logistics providers has been widely recognized and at present, there is a number of third-party logistics providers operating in the marine industry. These 3PL providers offer a wide range of services and facilities to the marine industry due to which the marine companies commonly hire the services of the third-party logistics providers and take the advantages of their services (Delfmann et al, 2002, p203). The study of 3PL providers, their importance and criteria of selection is an important topic because there are lots of people attached with the marine industry and at the same time the successful operations of the industry have the tendency to affect the entire economy.