Supply Chain

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Supply Chain Name Institution Supply Chain The supply chain is a network of interdependent and related entities organized to achieve flow of raw materials, products, important information, and money. Supply chain alliance is influenced by factors for example increased global competition, government regulation, and technological innovation. Benefits from supply chain alliance include a decrease in overall competitive advantage and overall costs and increased product quality. Supply chain alliance faces many problems including unpredictable events, which can lead to a transfer of risk exposure to other partners. Third-party logistics are companies which take the responsibility of another supply chain company in managing, controlling and delivering logistic services. A firm uses the third-party logistics party to take over some or all its logistics responsibilities, reducing the companies cost and improving the customer's performance. There are many reasons a firm uses third-party logistics. First, it allows the firm to focus on its core process without being involved in a separate industry (Thuermer, 2016). Secondly, third-party logistics only deals with distribution, maintaining the high-quality standard to increase efficiency. Thirdly the third party reduces the cost building a network encouraging saving a lot from the less cost. Firms use different decision criteria to choose a third-party logistics company to work with. First, there is vetting of the third party logistics company on its specialization, capabilities, and ability to customize solutions to meet their requirement (Thuermer, 2016). Secondly, Collaboration of the third party company is

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