logistics management 21

Critical Thinking

In today’s highly competitive, extremely variable and really dynamic environment, many firms are seeking solutions. Supplychainmanagementbecomesmore sophisticatedandthedifferencebetweenwhat firmswanttoachieveandwhattheycando in-house continues to grow, firms begin to realize that doing the right thing becomes more interesting than doing everything.Accordingly, they are becoming better focused and more specialized by outsourcing and offshoring activities that are far from their core businesses. In many cases firms decide to outsource this function in whole or in part to agents or third party logistics firms.

Using this concept of offshoring and outsourcing answer the following questions by taking any Saudi Local company or any Multinational company.

Question:

• What are Third party logistics firms?
• Explain the motivational factors for going internationally?
• On what ground companies choose developing countries location for offshoring? Use examples. (Mention the country and decisive factors)
• Assess the reasons for using third party logistics service in Saudi Arabia? Using examples, Explain

The Answer should be 3- 4 pages in length including the cover page and reference.

The Answer must follow the Key word/ outline points below:

• Outsourcing ,offshoring ,Third Party logistics
• Their Main functions
• Motivational Factors /Drivers
• Any local example
• Reasons with suitable Examples
• Reference

Note: You can support your answer by reading chapter 4 of your book.

You can use secondary source available on internet. Please use APA-style referencing.