Introduction
The concept of globalization provides for a wider scope of reach in the marketing and management industry where capitalization involves not only limited within the confines of localization but rather reaching out to the world. De Mooij (2010 ) defined globalization as one involving wider flow of capital, technology and media that involves human behaviour emanating from various global forces. A universal civilization emerges from industrialization and modernization with technological advancement. With modern, wiser, and educated global consumers, there is a need for an organization to be adept in adapting to the changing world with wise financial management and innovative management approach. The approach towards a practical management of a company's finances calls for the use of modern technology such as logistic outsourcing. Deepen (2007) explained that logistics is viewed by many as a management function. It is also considered to be a part of the supply chain management where it helps implements the plans for a more controlled and efficient flow and storage of goods as well as services that involve the origin and the destination of consumption that will help meet the needs of the consumer. Logistics allow the attainment of efficient and effective delivery of supply through availability and sufficient supplies from the needed resources. The same author points out the four levels of logistics development which make it a highly essential channel towards a wise marketing and financial management of an organization. This involves the functional specialization, coordinative function, enabler of process of orientation within the entire organization, and as a supply chain management. In order to attain the corporate goal of meeting the needs of their global consumer, outsourcing gives them a more innovative means to obtain productive outcome of employing logistic technology in their organization in a more efficient, convenient, profitable and cost effective management.
Discussion
Because globalization requires higher and wider expanse of trade and marketing to cover bigger markets, logistics technology provides the best resource to provide a company a more efficient strategy to cover the needs to provide quality management to meet the needs of their targeted consumers in the global market. The use of logistics provides an obtainable goal towards the implementation of planned procedures to mobilize resources, time schedules, meet the estimated arrival by providing an efficient transportation and the quantity of materials needed as resources. Cahill (2007) indicated that an efficient logistic management can reflect a positive effect of a corporate success. Logistics outsourcing provides companies a manner of controlled and well organized distribution of services and products to their global end users. With the outstanding economic benefits that logistics provides among companies, they find the need to improve and establish a flow oriented management and they find logistics outsourcing as the most practical and economically wise channel to accomplish this.
To provide a better understanding about logistic outsourcing, it is a manner by which a company try to commission a third part logistic (3PL) services to provide them better innovative technologies in a cost effective manner. Coyle, Langley, and Bardi (2009) described the most beneficial 3PL services are those involving more operational, transactional, and repetitive in nature. They indicated that the most common outsourced services are on the areas of transportation, custom clearance and brokerage, warehousing and forwarding. There is improvement in terms of service, facilitation and cost reduction. The global logistics trends towards outsourcing that focuses on the 3PL usage relates to the competency of a firm or company to establish a reliable delivery of services which is very critical to the efficient business relationship between them and the recipients of their services. The employment of the 3PL outsourcing provides any business firm, corporation and any business to implement a highly effective and efficient service to the end users with high confidence that there is a third party whose expertise of service complements in the delivery of their own service. The services of a third party provider for logistics services enhance the ability of the company to be globally competitive. They have their own resources and competence to deliver complementary services with end result of satisfying services to the consumers.
Because of the overwhelming growth of competition in the global market, companies needs to engage in a marketing strategy that will allow them to reach the global market with a more efficient undertaking that will provide delivery of efficient services that will satisfy the consumers. The management has the due pressure to ensure that this goal is reach. Logistic outsourcing provides the most competent option to give solutions among competitive companies to be on the lead with innovative strategies superior over other in terms of service delivery. Kersten (2006) indicated the advantages of using outsourcing management which helps the management reduce the capital investment on facilities and equipments, information technology as well as the need to increase manpower. It helps the management improve their core competency and logistics performance. Logistics outsourcing allows support on variety of operational areas of a company in terms of transportation, inventory management, and warehousing. Because of the rising need for a third party provider of logistics services, the logistic industry is said to have a promising growth in the future. Tompkins (2003) considers 3PL to offer flexibility, reduce inventory efforts, improved competencies and relatively save money. The management however is compelled to exert better control and management of ensuring that the third party they can commission to provide them extended service can be efficient and systematic. The advantage of outsourcing is it provides better innovative facilities to companies without the latter spending so much for technological equipment and facilities. Moreover, third party logistics providers are also experts in their fields and such also complements in the attainment of the company's success of delivering efficient service and productive management of their business. Rushton, Croucher and Baker (2006) reminded that when employing outsourcing service, a company needs to determine the continuum of service they want to obtain from the logistic outsourcing provider. First is to identify the best benefits they could get from outsourcing service. Second is to identify specific responsibilities the company expects the third party logistic provider to do. This should be laid down at the onset of contract deliberation and agreement. This is vital in the continuous running of the operation.
Branch (2009) enumerated the common criteria in the selection of a third party logistic provider. Improved chain management, implementation of new information technologies, value added services, collaborative partnership, the provisions of core services involving outbound and inbound transportation and a global modular product focusing on the single accountable entity.
The future of logistic outsourcing is quite promising due to demands of better competency in performance to the global market. However, Von der Gracht (2008) indicates some prediction that more companies in the future will reduce dependency to a single logistics provider thus smaller volume of work will be given to some companies in the logistics industry. Kutlu (2007) on the other hand predicted that there is possibility for 4PL model development in the future where it will help 3PLs meet the demands of volumes of services needed from the growing logistics industry. But nevertheless, there is no doubt that logistics outsourcing is perceived to be valuable in meeting the growing and changing globalization management.
Conclusion
Logistics outsourcing marked its place in the core competency in providing enhanced delivery of service in a highly competitive globalization of marketing services and delivery of goods. Companies acknowledge the role of logistics outsourcing to be able to keep up with the modern process of global management. Globalization increases the pressure among companies to hasten their delivery services, storage of goods and transportation services to provide more efficient and competent services to the end users of their service. The use of 3PL in the business management provides a promising and economically optimized strategy of reducing the management costs for running their business and allows them to reduce the costs for upgrades in facilities and equipment. The use of 3PL services allows for a more enhanced complementary delivery of service from a third party that have the expertise on their field of services. Manufacturers are able to meet the demands and needs of their consumers with the utilization of advanced technology that is readily available for 3PL can offer. These resources can highly complement the means by which goals for a competitive market may be achieved. The establishment of ties with the logistic outsourcing industry opens an avenue for improved business management that meets the globalization demands. Companies used to spend more time and money for managing their business especially in terms of meeting an adept supply chain management. The advent of logistics outsourcing gives them the benefits of expanding their services with complementary support of service and expertise through logistics outsourcing especially in transportation and warehousing. Logistics outsourcing is no doubt an important channel in the attainment of global competitiveness and efficient delegation of service to the end users of services of a company. It offers an aid towards a more competent, highly competitive industry that involves efficiency and reliability of services in providing a modern innovation of service enhancement, controlled flow of service, organized and systematic process of product and service deliveries.
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