Philippine E-Journals

Converging of Inbound-Outbound Transportation Operation and Material Procurement System through Third-Party Logistics

Jemima May Aranas | Nickole De Ramos | Patrick Rodrigo

 

Abstract:

The goal of the study was to analyze the viability of converging the transportation and procurement services needed by the company through third party logistics as an alternative to the in-house logistic system or other providers. Specifically, this study determined the feasibility of contracting out 3PL to find the ideal delivery and procurement service to achieve higher efficiency, productivity and calculate the contribution of the specific operations, as well as to identify the benefits on the management due to the transfer of responsibilities. It also came up with recommendations to improve the practice of transportation and procurement services. The researchers analyzed the problems that Richtech Industrial Supply Company encountered in its transportation and material procurement. They conducted interview and survey in Calamba City, Laguna. Technical and economic aspects were studied to test the viability of the business. If the proposed business could render better services, it would greatly help companies by accepting the concept of employing third-party logistic transportation providers. With an in-depth study of this specific area of service which plays a vital role in customer satisfaction and customer relation, that will minimize the delays in the inbound and outbound operation of the company. This study provided the readers insights about how the logistics outsourcing industry develops and grows. Some companies choose to engage in different kinds of relationships ranging from short-term oriented transactions to long-term collaborative relationships.