GROUP 2

ANTE, MARIELLE
DAVA, JULIET
EMRADURA, ARMELAINE
GLODOVIZA, JOSHUA
MACALALAD, VIC ANGELO
ORBASE, NICOLE
VARGAS, ALLEN
 PRICING
is the process whereby a
business sets the price at
which it will sell its
products and services
 PRICE
DRIVERS
factors which cause a
change in costs of work
performed in an
organization or in process
Pricing
Models
 Transactional Pricing
also known as traditional unit pricing

most popular pricing structure

the 3PL and the customer agree on a flat fee for

each service thats going to be performed
 ACTIVITY BASED
COSTING (ABC)
the customer agrees to pay the
3PL a flat fee to cover the fixed
costs of running a dedicated
facility
COST PLUS PRICING
the customer pays the 3PL a fee
based on the actual costs for the
services provided, plus an agreed
upon profit margin based on certain
percentage that is prevalent in the
market.
 GAIN SHARING
the 3PL puts their fee on the
line by agreeing to be paid
based on the improvements they
can deliver in key areas that are
relevant to the customers
Fourth Party Logistics (4PL)
It is an integrator that assembles the services,
capabilities and technology of its own organization
and other organizations to design, build and run
comprehensive supply chain solutions.

It presents a solution that incorporates the

advantages of both outsourcing and in sourcing to
provide maximum over all benefit.
4PL service provider
They gather the constituents parts such as:
1. Systems
2. Transport providers
3. Order Management
4. Inventory Management
4PL Variety of Models
Industry Solution Model: To coordinate and
manage the distribution operations of its primary
clients, initially, and then those of the other realted
companies within the industry.

Supply Chain Partner Model: To manage and

integrated industry supply chain consisting of
manudacturers, material suppliers, 3PL providers
and management consultant.
 PROMOTION AND PHYSICAL
EVIDENCE
As the markets get more competitive, promotion is an
imperative element of the 3PL.

Customer Portals are used as promotional tools for the

organizations.
 Elements of Promotion:
Sales

Organization
Public Relations
Advertising
Sales Promotion
PHYSICAL EVIDENCE
Building

Packaging

Documents (such as invoices, tickets and dispatch notes)

Delivery Staff Dress Code

Signage
 PLACE AND PROCEDURE
The role of place is to facilitate the transaction between the
logistic organization and its customers.
Hassle Free service has 4
dimensions:
1)The logistic organization must make its backroom operations
near to invisible to the customer.

2)Easy access of information should be provided to the

customer.

3)Should be easy for customer to find the location

4)Possibilities of failure of the operations in services.

 PEOPLE
The HR policies of a 3PL and the availability of trained manpower should be a
matter of concern

It could also be a factor in selecting a 3PL for the reason that the industry is
primarily a manpower intensive industry.

The HR policies have a definite impact on the morale of employees which in turn
has a direct effect on the operations and profitability of an organization.
 3 MAJOR SKILL GAPS IN THE 3PL
INDUSTRY
1. Attrition

2. Improper recruitment

3. Insufficient addition of manpower

MAIN REASONS OF MAJOR SKILL GAPS

1. More attractive career options availability

2. Poor working conditions

3. Poor career growth

4. Poor image of the industry

 REMINDERS
Understand how logistics competency adds value to the user firms and its
customers

Understand goals and objectives of its customer and align itself to the same

Consider fulfilling the requirements of customers guided by market

opportunity as the motivation factor behind their functions and activities
A partnership may be successful only when the two organizations have share
the same values, align culturally and the 3PL complements the activities of its
customers

Once the objectives and the environment in the two organizations go well with
each other, it becomes easier for the functional heads and the front liners to
execute the expected result