I concur with Zhang and Okoroafo (2015) that supply chains are turning greatly global and advanced. With the internationalization of business operations, competition amid different players has developed into rivalry among supply chains. The information by the authors is true as supply chains are turning highly developed and critical to the aggressiveness of different organizations. In addition, their interconnected, universal form also results in the supply chains being highly complicated (Zhang & Okoroafo, 2015).
This signifies that it is progressively demanding to maximize product and knowledge streams and finally convey the appropriate service intensities, swiftness to marketplaces, and least functioning outlays.
Though the article majorly dwells on potential risks, global supply chains have certainly initiated new forms of supply chain opportunities, decreased the scope for fault, and enhanced the confidence of organizations on professional supply chain service suppliers. If planned suitably, the international supply chain could be an actual basis of competitive benefit.
As affirmed by Zhang and Okoroafo (2015), the establishment of third-party logistics (3PL) service could assist the supply chain to realize cost decrease and cut down lead time all together. On this note, 3PL has been incorporated in the supply chain to improve its success. Third-party logistics assists in the management of the manner in which resources are shipped to the regions that they are needed.
A global supply chain is conceived as an intricate, active system where there are interruptions due to lengthy delivery, in addition to long lead times. With national borders turning greatly porous to economic endeavors and capital turning increasingly portable, business value chains are turning highly global in their scale.
The internationalization of production involves a considerable development of global sourcing for both constituents and finished products. The greatest issue that executives encounter is settling on the activity in the value chain that may effectively be sourced globally, and that may require being carried out in geographical closeness to one another.
Zhang and Okoroafo (2015) were correct in the affirmation that there are a massive amount of gains that businesses attain through outsourcing supply chain management to third-party logistics. 3PL provides a comprehensive resolution for gathering, covering, warehousing, and shipping. The implementation of third-party logistics providers offers businesses dependable logistical benefits and maximizes productivity via collective awareness and possessions.
Third-party logistics suppliers offer a broad supply system that gives benefits over internal supply chains. With the application of a third-party logistics system, every stride in the supply chain may be implemented in the most competent, cost efficient manner. Selecting a third-party logistics permits businesses to gain from supplies that are unobtainable internally.
In shedding more light to the benefits of third-party logistics, Zhang and Okoroafo (2015) affirm that third-party logistics suppliers are incorporated into a supply chain since they assist in the management of the complete supply chain. Supply chain contributors might take pleasure in benefits anchored in four causative bases of third-party logistics specialty: range, expertise, search capability, and information technology proficiencies.
With the application of third-party logistics, outsourcing saves a huge amount of time and resources for the organization (Zhang & Okoroafo, 2015). The use of third-party logistics provider eradicates the requirement to invest in storehouse space, expertise, shipping, and employees to implement the logistical progression. Third-party logistics providers save from expensive errors and permit the organization to create an international logistical system with lesser risk and greater returns.
The authors were right to state that third-party logistics providers save time. For instance, third-party logistics providers save an organization the time required to accomplish the supply chain. In this regard, an organization does not need to worry regarding the official procedures, billing, inventories, training, recruitment, and optimization entailed in having the goods taken to a preferred destination.
Organizations that have seasonal operations also benefit from free transitions between the times of positive and depressing occurrences in their undertakings attributable to the capacity to use more storehouse space and resources when required. Moreover, as discussed in the article, the use of third-party logistics providers enables organizations to develop into new areas devoid of obstacles.
Third-party logistics providers offer distribution centers and storehouses that are tactically positioned to permit fast moving of products anywhere across the globe. Decentralized delivery provides lesser expenditures and gives faster delivery. Additionally, third-party logistics providers have the supplies to flawlessly back development into emerging markets.
In their article, Zhang and Okoroafo (2015) focused much on the lack of optimal implementation of third-party logistics in the Chinese market. They affirm that the research on third-party logistics in China is still in its formative years. Furthermore, they allege that the task of third-party logistics in the supply chain is not excellently studied.
Though this is the reality, the authors ought to have focused more on recommendations that could enable China triumph in the application of third-party logistics providers. Some major strengths of the logistics sector that could be tapped in the Chinese market encompass aspects such as excellent connectivity and advanced infrastructure.
Reference
Zhang, H., & Okoroafo, S. C. (2015). Third-Party Logistics (3PL) and supply chain performance in the Chinese market: A conceptual framework. Engineering Management Research, 4(1), 38-48.