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Manufacturing

Comparison of Logistic Companies

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Comparison of Logistic Companies

The logistic system has a significant effect on the cost of services and product, revenues, quality, and competitiveness in the industry. Evolution of third-party logistic provider (3PLs) has improved the level of services offer in the industry through activities that are outsourced to a logistic service provider. They also have a strategic dimension which has increase competition in the industry. The organization that incorporate 3PLs have a competitive advantage over its competitor. This essay compares and contrasts various 3PLs companies in term of industry, technology integration, services, uniqueness, and contract requirement, and customized solution.

Compare and contrast between DHL Express, Expeditor, and Neovia logistic

Industry and services

DHL Express is a global logistic company offering a wide range of logistic services in more than two hundred countries. The company provides logistic services to technology, auto-mobility, chemical, life science and healthcare, public sector, retails, energy, and manufacturing sectors (“DHL | English,” 2020). It also offers consumer logistic services through DHL parcel and ecommerce service. Other service includes supply chain solution, express services, warehousing and distribution, and mail.

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FedEx is an international 3PLs offering solution for global supply chain, ecommerce, and other business challenges. The primary company industry includes offering shipping arrangement, tracking of customer good, and in-store shipping. It also provides services such as solution designs, data management, information technology, networking expertise, sale and marking, and customer support (“FedEx,” 2020). The ability to outsource various services such as networking service, data management, and design and printing improve company competitive advantage compared to others.

Neovia company offer different services compared to the other two companies. It specializes in the industry of construction equipment manufacturer offering an extensive logistic service worldwide. Its services include automotive, construction, energy, technology, aerospace, mining and other industry (“3PL,” 2017). The specializations in few identical industries have enabled the company to offer a full supply chain from inbound to outbound logistics. Other services include product distribution, warehouse management, inventory optimization, and technology consulting and support.

Customized Solution

Neovia company integrate the values of productivity, quality and customer satisfaction at all level of their transaction. The centralize customer satisfaction to drive their business to the next level as well as solve a customer problem in logistics (“3PL,” 2017). The ability to integrate these values into their services have increased customer satisfaction compared to their competitors, such as DHL Express and FedEx.

On the other hand, DHL express focuses on connecting people to their daily lives. The aim is to focus on the need of the customer to improve their lives as they concentrate on their core business. By offering logistic service, DHL expresses minimized the challenges customers face by connecting them with other and goods across the global market (“DHL | English,” 2020). FedEx company focus on delivering the best services to its customer through tacking any global logistic challenge in the field of ecommerce (“FedEx,” 2020). The goal is to offer a solution to the customer of the field of transportation, business service, and e-commerce.

Unique services

FedEx does not only focus on logistic service but offers other business services. It is an outsource company for services such as networking services, sale and marketing, solution design, and data management that are unique to other companies. Neovia company specialize in logistic of construction equipment manufacturer which make it unique compared to other logistic companies that have a wide range of industries. DHL Express offers a wide ranger of logistic service across all industry, focusing mostly on transportation of good and service.

Technology Integration

DHL express depends on technological innovation to reach its international customer. The company innovate parcelcopter technology to create an international air express delivering services to customer’s doorstep (“DHL | English,” 2020). FedEx integrate technology in their services to offer new shipment, open business and support small business through data management, networking, and information technology. It also uses e-commerce service to manage its international deliveries and tracking of shipments. Neovia uses SAPs service part planning system to integrate all its services with the latest technology updates.

Contract requirement

Every logistic provide unique contract requirement based on the type of customer and the industry. Some of the standard contract requirement among three company include use of commercial motor vehicle agreement, an essential detail of the consumer and company, details of the parcel or service delivered, and signature of both parties. Other include services to be provided by 3PLs carrier, rate, charges, payment, rights and obligation of the shipper, performance requirement, and condition for termination

Neovia logistic company specialization in the construction equipment manufacturing industry offers a unique perspective in the logistic industry. I would consider it in the final project to learn more about its business how it deals with the high competition with other companies offering the same service.

The diagram below shows the Neovia logistic company analysis.

 

Source: (Site overview, 2020)

The diagram above shows the global rating of the logistic company. The company have experience fluctuations standard in the global market over the last one year hence need to study its movement and strategies used to cope in the global market.

(“3PL,” 2017)

(“DHL | English,” 2020)

(“FedEx,” 2020)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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