Excerpt from: China Supply Chain and Logistics Strategy
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| July 07, 2005 | | Find out what firms need and expect from 3PL services in China | One of the most critical issues in logistics and supply chain management
today is the challenge of developing and sustaining successful relationships.
The challenge of forming successful relationships between your 3PLs and your
customers is a real one. While outsourcing logistics can provide substantial
benefits in costs, expertise, systems, and other areas, it is critical to follow
best practices in identifying, selecting, and managing 3PL relationships.
The use of 3PLs in China generally helps to achieve routine, day-to-day
activities. However, there is a great need for assistance in performance
measurement. Quantifiable measures of 3PL success include reduced logistics
costs and assets, shortened average order cycle time, and lower inventory
levels.
The 2003 survey targeted firms in China that are current or potential users of
logistics services provided by third party logistics providers (3PLs) such as
COSCO, Sinotrans, St-Anda, and PG Logistics.
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