Logistics and Supply Chain

1 Introduction

Background information

Two cases from Managing Supply Chains- A logistics approach are discussed in this article. Case 4-1 focuses on the fourth parity logistics provider (4PL) and case 12-1 focuses on the company owned distribution system optimization.

Firstly each case will be summarized separately, and then a critical analysis will be done for the two cases. At last, the further discussion of whether involving 4PL to distribution system or having company owned logistics will be presented.

2 Case Study 4.1 – CoLinx, LLC

Summary

Business Scope

CoLinx is a different kind of company which is difficult to define because the following reasons:

 CoLinx is a logistic company, but it does not have any inventory.

 CoLinx is built to save cost and increase performance, but it does not operate as a profit center.

 CoLinx tries to involve as many distributors and manufacturers as possible, but it does not promote itself or try to build a brand image.

 CoLinx is owned by four independent companies, but the four companies share the same high-level services and hardware.

The company’s only mission is to “be the best choice” for the Member manufacturers it serves and the employees of CoLinx.

CoLinx builds up an industry platform/ shopping mall where distributors can shop in the separate stores (each store represents a manufacture) and fill four separate shopping carts. As CoLinx is perfected, all purchases will be delivered in one shipment. Working with several manufacturers selling through the same distributor base allows it to send like-shipments to like-destinations,meaning fewer trucks in the yard for the distributor .fewer receipts ,and a consolidated bill of lading with multiple packing lists,Making it easier for the distributor on the receiving end.

Advantages

Demand and supply balance is the core of supply chains, no matter in production or logistics. For manufacturers, the core business should be focused on the production...