LOKESH SINGH 14/279 NAVEEN VYAS 14/283 SAKSHI GUPTA 14/296

SHIKHA GUPTA 14/300 SHIPRA AGARWAL 14/301 VARUN MADAN 14/312

FedEx Supply Chain Services A 3PL Provider

GROUP 5
SECTION C
LOKESH SINGH NAVEEN VYAS SAKSHI GUPTA SHIKHA GUPTA SHIPRA AGARWAL VARUN MADAN PGP/14/279 PGP/14/283 PGP/14/296 PGP/14/300 PGP/14/301 PGP/14/312

Agenda

PL Terminology
1PL Firm or an individual that needs to have goods transported from a point A to a point B. Includes both sender and receiver. 2PL Asset-based carrier, which actually owns the means of transportation. Includes airlines, truck, rail companies

3PL
Provides multiple logistics services for use by customers

4PL
Consulting Firm specialized in supply chain management

Third-party Logistics is simply the use of an outside company to perform all or part of the firms materials management and product distribution function - Simchi-Levi (2000)

Typical 3PL Arrangement

Shipper Hub Distributi on Centre Customer

Inbound Logistics

Outbound Logistics

Categories of 3PL
Service Developer Offer their customers advanced value-added services : tracking and tracing, cross-docking, specific packaging, or providing a unique security system. Solid IT foundation and a focus on economies of scale and scope Standard 3PL Provider Perform activities such as, pick and pack, warehousing, and distribution (business) the most basic functions of logistics Customer Developer Highest level that a 3PL provider can attain with respect to its processes and activities. 3PL provider integrates itself with the customer and takes over their entire logistics function. High Complexity of Service Low -

Customer Adapter This type of 3PL provider comes in at the request of the customer and essentially takes over complete control of the company's logistics activities.

Low

Customer Oriented

High

Functions of 3PL
Transportation
Services extend beyond transportation to offer a comprehensive set of logistics offerings. Ryder, Schneider Logistics Warehouse or distribution experience DSC Logistics

Warehouse/Distribution
Forwarder Financial Information

Non-asset owners that provide a wide range of logistics services Hub Group

freight payment and auditing, cost accounting and control FleetBostom

Internet-based, business-tobusiness, electronic markets FleetBostom Transplace

Why Use 3PL

Parameter Economies of Scale Saves Time Investment Cost Reduction Description Utilize economies of scale because they are so large Better use resources to focus on core competency Reduces the investment a company would make 3PL work diligently as they need to be profitable Continuous innovation is difficult Do it better because of position in supply chain Improved expertise and data access

Better Performance

FedEx Global Supply Chain Services(FGSCS)

Objective:
To offer customers comprehensive and strategic supply chain solutions and management, incorporating FedEx transportation and IT integration in order to support the specific needs of our customers. Industry Solutions Aerospace and Aviation Automotive Fashion(apparel) and Luxury Goods

Health Care & Life Sciences

High Tech

Source: http://fedex.com/us

FedEx Global Supply Chain Services(FGSCS)

Critical Inventory Logistics Comprehensive, end-to-end solution designed to optimize the management of your critical inventory and service parts distribution and returns process. Integrated fulfilment services that facilitate inbound and outbound, and reverse logistics. Flexible, multi-channel suite of solutions allowing customers control of the returns process. Optimized management of domestic and international shipments for all modes of transportation. Door-to-door temperature controlled international transportation services

Fulfillment Services Returns Management Services

Transportation management Services

Cold Chain Services

Source: http://fedex.com/us

Critical Inventory Logistics

A comprehensive, end-to-end solution designed to optimize the management of critical inventory and service parts distribution and returns process.
Forward Stocking Location

GROUP 5

Forward Stocking Location

Central Stocking Location

Forward Stocking Location

Forward Stocking Location

Source: http://fedex.com/us

Critical Inventory Logistics-Benefits

GROUP 5
Improved customer service
Better inventory management The ability to reallocate resources Costs Optimization

Transportation Costs

By ordering what is needed and when it is needed. Delivery on time, meeting desired service levels

Lower total cost of ownership

Source: http://fedex.com/us

Fulfillment Services
Order administration
Inventory Administration Order Execution
Administers complete order process including pick, pack, and ship and kitting and configuring services

includes visibility of inbound, outbound, and static inventory within distribution centres (DC) and satellite storage facilities

Hub-based "parts bank" fulfilment with later order cut-offs Emergency fulfillment Returns management

Fulfillment Services

Regional Warehouses

Regional Warehouses

Fedex Global Distribution Centre

A state-of-the-art facility for optimum performance. The FedEx European GDC gives hub-based warehousing for both forward and reverse logistics 8,500-square-meter / 90,000 square-foot facility Same day order processing and fulfillment Electronic Static Discharge (ESD) protected areas Inventory visibility.

Transportation Management Services

End-to-end transportation management Works with customers to determine optimal shipping modes, minimize recovery needs, facilitate claims management Provides consolidated reporting and invoicing Optimized management for all modes of transportation Worldwide deliveries Communicate transport order to FedEx Express or designated service provider

Select appropriate routing for order

Process invoices from other carriers Prepare billing for customers

Shipment tracking

Proactive monitoring of events that occur throughout the transportation Alerts are generated for events that occur outside the schedule

Online Tools
Order administration
Real time visibility
Efficiently manage the processes Order fulfillment Transportation

Provides a view into inventory throughout the supply chain In store or in transit

Connectivity

Provides multiple access points to key members of your supply chain

Returns Management Services

Increasingly, customer attention is focused on supply chain visibility, event management and also on cost minimization

On request collections at end customer or dealer site

Predefined returns address(es) for consolidation (May be warehouse)

Customers (manufacturing) facility, a repair centre or recycling facility

Solutions can have multiple numbers of transportation legs/modes and may include fulfillment from a warehouse location Use of IT for shipment monitoring, delay detection and recovery

Return Management Solution

Flexible and adaptable services according to the specific needs of each potential customer
Returns option Repair and return Return Merchandise Authorization (RMA) management End of life solutions recycling and disposal Try and buy Consolidated returns Transportation options Express same day or next day Standard surface transportation Domestic Dedicated and time critical Commercial airfreight Saturday collections and deliveries Value-added collections and deliveries

Layers of 3PL Challenges Layers of 3PL Challenges

Network Configuration: Designing the optimal network to satisfy service requirements at minimum cost
Information Flow: Flow of information throughout the supply chain.

Material Flow Movement of products from the upstream entities, via the 3PL provider, to the downstream entities

Relationship Management: Necessary terms and conditions which facilitate the partnership between t 3PL provider and client .

Attributes of Layers

Challenges for 3PL Provider

Name of Layer Logistics Network Configuration Material Flow
Challenges Dynamic network design and configuration Assignment of warehouses to demand points Assignment of plants to warehouses Allocation of warehouse capacity to different buyers Level of inventory at each warehouse & DC Coordination with upstream to coordinate production and inbound transportation Coordination with downstream retailers to coordinate inventory level with outbound transportation Ways for 3PL companies to share information Types of information to be shared Types of technology to use Assessing the impact and value in sharing information Building trust and visibility in SCM operations Building and sustaining long term partnership Contract design and incentives to create win-win situation for both the parties Objective performance measures

Information Flow

Relationship Management

ThankYou