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A COMPARISON OF U.S. INTERNATIONAL FREIGHT FORWARDERS AND THIRD PART LOGISTICS PROVIDERS

Since the 1980s, third party logistics providers, or 3PLs as they are known, have been a popular topic, appearing in numerous research articles and business magazines. It became almost a magic word: a mention of the term 3PL brought perceptions of cost reduction, increased customer service and profits instantly to people's minds. At the outset, to facilitate further treatment of the subject, it is appropriate to set forth the basic characteristics of 3PLs. Third party logistics providers have been constantly evolving and changing since the concept became widely recognized in the late 1980's. Generally, third part logistics providers are outside companies that perform some or all of another firm's logistics activities. The term, "outsourcing," is sometimes used interchangeably with the term 3PLs. Typically, logistics services that the 3PL providers perform are transportation, warehousing, information support, order fulfillment, carrier selection, and inventory replenishment. There are many more services provided by the 3PL industry; some are even customized; providers have sought to perform good customer service and meet customers' needs as much as possible. This great range of services is the result of increasing competition in the industry; those listed previously are only some examples of more common services. International freight forwarders are similar in their basic nature to 3PLs, but are often referred to as being in a different industry. By definition, IFFs are firms, which arrange for and execute movement of goods form point to point across national borders. Some common services performed by the international freight forwarders include import and export clearance, documentation and transportation. The problem of how similar is the international freight forwarders and the third party logistics provides the framework of this research paper. To determine if the international freight forwarders are 3PLs and to see how similar and/or different the two industries are from each other this paper will discuss what the 3PLs and IFFs do and the degree to which they perform the different services. The paper will also identify which services are most important to their operations now and in the future. Lastly, it will also examine the similarities and differences between the international freight forwarders and the third party logistics providers in the U.S.

Language

  • English

Media Info

  • Features: Appendices; References; Tables;
  • Pagination: p. 314-327

Subject/Index Terms

Filing Info

  • Accession Number: 00804781
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jan 10 2001 12:00AM