Logistics service provider
4 important questions on Logistics service provider
Which 5 types of LSP's do we have?
- Freight forwarders: Agents who arrange transportation and shipping of freights
- Couriers: Urgent delivery products
- Integrators: Offer services from consignor to consignee (FedEx, UPS,..)
- Agencies: companies combining buying power to gain cost reduction on freight transport rates
What is the differnce between LSPs and 3PLs?
What are some 3PL services?
-Transportation
-Warehousing
-Pick and pack
-Light manufacturing
-Vendor managed inventory
-Customs clearance
-Trade financing
-Managing reverse logistics
-Parts distribution
-Inventory management
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How to choose a LSP?
-Services to be provided
-Costs and costing approach
-Terms of carriage, applicable Incoterms, insurance
-Speed/transit time
-Performance metrics and service levels, reliability
-Information systems, other technology issues and documentation requirements
-Core versus value-adding services required
-Staffing issues
-Reverse logistics issues
-Implementation/termination/ability to alter conditions
-Details on the logistics service provider's history, client references, etc.
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