A study in the functions of third party logistics programs and the importance in food product supply chain optimization

Abstract

The study was conducted to not only state supply chain problems that faced food manufacturers and distributors, but also how the intervention of outsourced logistics providers and supply chain programs would mitigate the risk involved in the transportation realm. The supply chain programs developed and diagramed in the research go through chronological steps on how the data was extracted, analyzed and developed into a potential solution for specified customers. With geographical limits, each solution was developed into a single day program where a carrier completed two shipments; one shipment that was from the organic customer portfolio and the other that was derived from the extracted information. Each program had three main benefits that were the result, cost savings for the customer, improved service levels that stemmed from benchmarking key performance indicators and alleviated trailer rejections due to inacceptable conditions. Each one of the benefits was set to build a consistent supply chain foundation and assist each customer in notching a step closer to supply chain optimization.