MGT 496 Week 4 Discussion 2

The Forbes article identified several advantages to using a Third Party Supplier Relationship Management System 3 P.L.S.M.S. The article states how organizations are looking to break off some of their in house operations and outsource them to specialized agencies. In the example of transportation one advantage is shifting the risk away from the organization and transfer the risk to a third party logistics service provider. 3 P.L.S.M.S such as forwarding agents provide a diverse array of transportation services, administrative support, and strategic planning for their Logistics customers. Some third party organizations cover the full spectrum of global freight management issues while other companies assist with specific risks like asset protection, cargo loss control, or hazardous materials movement. As stated in the text “Traditionally, freight forwarders act as agents on behalf of shippers. They will do anything, anytime, for anyone, to any place in the world, by any means of transport for profit” (Emmett, 2005, p 213). This provides better efficiency by allowing the organization to shift resources toward production. This provides value by negotiating among the shipping organizations to get a better price.     
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