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Classificatiom of logistics - Coggle Diagram
Classificatiom of logistics
Logistics is an important field in supply chain management. There are many ways to clssify logistics, including by form, process, and type of goods.
A. Logistics activities classification by service level
First party logistics
Self- organization: The business organization and carries out logistics activities
Dedicated resources: Using the company's own transportation, warehousing, information systems, and personnel.
Direct management: Directly managing and operating the entire logistics process.
Advantages:
High proactivity:The owner of goods can indenpently provide logistics at any time.
Tight control: The enterprise has tight control over the transportation process and service quality.
Long-term cost reduction:For large enterprises, investing in logistics infrastructure can reduce long-term costs compared to outsourcing
Disadvantages:
High initial investment: investing in infrastructure, transportation, and human resources requires a large investment.
Management and operation capability: for enterprises without sufficient scale, experience, expertise, and qualoty of human resources, the 1PL model will create many difficulties, reduce efficienvy, increase risks, and bw quite costly.
Limited scope: small enterorises have limited transportation scope and cannot expand to a large or international scale like other logistics models.
1PL moadel is suitable for large enterprises with large transportation needs and strong financial capabilities,as they cn invest in infrastructure and manage logistics effectively.
Second-party logistics (2PL)
Povision of individual services:provides individual logistics services such as transportation, warehousing, customs procedures, etc.
Not integrated:
Flexible: Businesses can choose the necessary services from various different providers
Advantages:
Reeduced initial investment: Businesses do not need to invest in logistics infrastructure and transportation equipment.
Access to professional services: 2PL providers have experience and ensure quality transportation.
Optimized transportation process: Providers have a wide network, helping to reduce costs and optimize routes.
High flexibility: Businesses can choose different service providers for various transportation needs
Disadvantages
Dependence on providers: Loss of direct control and risk of service quality issues.
High service costs: Outsourcing costs may increase, especially for large shipping volumes.
Limited scalability: Not suitable for large-scale or international logistics expansion needs.
Lack of supply chain integration: Only addresses transportation, other aspects still need to be self-managed.
The 2PL model is a reasonable choice for businesses that want to reduce initial investmentand leverage the expertise of transportation providers. This model is particularly suitable for businesses with medium-sized transportation needs, but not optimal for large-scale logistics operations or those requiring comprehensive supply chain management.
Some 2PL providers: Saigon newport corporation-SNP, ALS( Aviation logistics service), viettel post, vinafro