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4PLs "virtual" Logistics Service Providers, Dell

The Session Long Project (SLP) requires writing an essay on a contemporary logistics topic facing your organization. As noted in the instructions for the Module 1 SLP page, the SLP consists of two activities: (1) an assessment phase that describes how the module topic applies to your Case study organization's logistics operations, and (2) an improvement phase that asks you how the organization might better adjust logistics operations to respond to the module topic.

Whenever possible, integrate information from previous courses along with providing examples based on your own experiences to illustrate and support the points discussed in the essay.

For the module two SLP, write an essay of 1-2 pages discussing the following:

Phase 1 (Assessment Phase)

Describe and assess your organization's experience, if any, with 4PLs ("virtual" logistics service providers [VLSP]).

Phase 2 (Improvement Phase)

Determine if your organization could more effectively use the services of 4PLs (VLSP). If your organization has no experience with 4PLs (VLSP), discuss the major advantages and disadvantages that might result from using a VLSP for the organization.

Incorporate the background materials and previous course work in assessing the reference organization's experience, if any, with virtual logistics service providers. Demonstrate critical thinking, logic, and an in-depth knowledge of the virtual logistics service concept and how it could be introduced or more effectively utilized in the reference organization's supply chain management effort.

◦Assess the potential role of a virtual logistics service provider applied to your Case study organization.
◦Identify differences between traditional and virtual logistics service providers.
◦Describe the role of virtual logistics services providers.

Solution Preview

Phase 1
Dell has extensive experience with 4PL virtual logistics service providers. Dell requires these services because it focuses on individual customers and integrates the supply chain through linking up of the chain of information. It does not manufacture products nor does it carry inventories of finished goods. Instead Dell sells directly to individual customers. It buys modules and does the final assembly of product when the actual customer order has been received. Virtual service providers are crucial for the success of Dell's business. 4PL virtual logistics service providers have flexibility, adaptability, and the synchronization required for satisfying Dell's needs. 4PL virtual logistics use electronic information for piloting the flow, and develop a knowledge approach consisting of Just in Time Knowledge management. 4PL service provides Dell with the means to gain better control of transportation and logistics operations and costs. It is important for Dell to manage its inbound logistics with suppliers and contract manufacturers. To have the parts it needs at the right time to assemble a PC, Dell asks its suppliers to hold inventory in warehouses within 15-30 minute drive to its plants. At Dell, when orders are received, the parts are trucked to the Dell plant ...

Solution Summary

The answer to this problem explains how Dell has gained from 4PLs "virtual" logistics service providers. The references related to the answer are also included.

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