Supply Chain and Logistics Management and strategy Assignment

cut Chain and Logistics Management and strategy - Assignment ExampleThird companionship logistics companies have the capability to tailor- progress to services according to the business needs of HP. While, it may not be possible for HP to internally deploy best resources for all supply chain operations, outsourcing the same to a good 3PL would ensure the same. In addition, there is a greater accountability and a willingness to please the client by the 3PL (Sullivan).Third society logistics would also enable HP to concentrate on its core competency which is manufacturing or assembling of blue quality computing technology products. Similarly, 3PLs whose core competency is in logistics would be able to better process the logistics of HP. Therefore, a win-win situation is created for both the partners. However, due to a concentration on its core competency, there is a risk of HP losing control over its operations in the long term. Also, HP needs to make it sure that the 3PL provide r should not have strategic alliances with a competitor as it would lead to conflict of interest (The Ultimate Logistics Guide).One of the biggest advantages of using third party logistics vendor comes from the realization of economies of scale. Third party logistics vendors generally have large transportation fleet and warehouses since they provide these services to a number of companies. This results in effective cost management. In addition, there are also cost savings due to economies of desktop. Economies of scope are realized because common resources can be used for many varieties of products within HP or between firms due to involvement of 3PL vendors (Nemoto, Tezuka).Considerable costs are also saved in not bad(p) investments in warehouses, logistics and transportation. The 3PL providers can further spread the financial risks by outsourcing to subcontractors and Fourth party logistic providers (4PL).Having mentioned a lot of savings, the probability of negative impacts ca nt be ignored. If