International Marketing Practices

Table 15. Transportation analysis, ranking from best (1) to worst (4) performance [18].

Determinants

Rail

Truck

Ocean

Air

Cost

2 3 2 1 2 3

3 2 1 2 1 2

1 4 4 4 4 4

4 1 3 3 3 1

Transit Time Reliability Capability Accessibility

Security

Because a small to medium sized forest products firm likely lacks the means to command its own transportation fleet, it will need to look to a third-party logistics provider (3PL) to manage the firm’s transportation. A 3PL might facilitate services throughout all or part of the supply chain (see following section) [38]. Third-Party Logistics Providers (3PLs) When considering export operations, arranging and coordinating logistics can be complex, particularly for small to medium sized firms, which do not typically have the time, personnel, or knowledge needed to optimize efficiency. Third-party logistics providers, often referred to as 3PLs, offer contracted logistics services to their clients, like freight forwarding, packaging, transportation, and inventory management [159, 162]. Because these firms offer a wide range of services, they are seen as a one-stop shop, allowing smaller firms to focus on their core business and ensuring effective handling or transportation of their products [94, 159]. Generally, 3PLs provide improved logistics services at equal or lower cost; in fact, a majority of Fortune 500 companies contract 3PLs [94, 166]. Third-party logistics providers offer their clients opportunities that were previously unavailable, such as the ability to track packages, eliminate extensive inventories, extend network reach, and handle specialized products [166]. However, it is important to ensure a given 3PL is the right fit for your firm, as the partnership is often contractually binding and allows for less producer control [94, 166]. To locate a firm in line with your operation and its needs, explore available online databases, such as the detailed resources provided by 3PLfinder.com, an online third-party logistics locator. Additional examples of 3PL resources are in the box on the next page. Superior logistics operations, often attainable through partnerships with 3PLs, have become a source of sustainable advantage for firms and will be paramount to success going forward [162]. According to the 2019 23 rd Annual Third-Party Logistics Study, firms must adapt to meet continually changing and complex supply chains, and technology allows firms to obtain data points throughout the supply chain to increase efficiency and transform logistics [167]. In addition, although not entirely applicable for small to medium sized firms, notable advancements have taken place to move beyond third-party logistics providers to include fourth-party logistics

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