RISK MANAGEMENT 3PL (THIRD-PARTY LOGISTICS PROVIDER) Dissertation

RISK MANAGEMENT 3PL (THIRD-PARTY LOGISTICS PROVIDER) - Dissertation ExampleAlso, the logistics industry is transforming cursorily because of want of control in transportation scenario due to TPLs working in the technologically advanced environment of meshing, e-commerce, and other electronic ways to offer logistics work (Marsh, 2007). TPL has been variously defined in literature. A definition of TPL by Knemeyer & Murphy (2005, p. 710) citing Murphy and Poist (1998), point out that TPL involves a relationship between a shipper and a third party which, when compared with basic services, has more customized offerings, encompasses a broader number of service functions and is characterized by a longer-term, more mutually beneficial relationship. It is a narrower definition of TPL focusing on the word relationship, highlighting the long term outlook of the TPL for completing various strategic functions. When it comes to managing run a risks, sufficient literature is available on risk management in general, but when it comes to risk identification, research related to identification of risks is still in nascent level. Companies need to invest resources in attempting to identify the risks systematically nevertheless, methods to follow systemic approaches are few and scarce. The similar viewpoint is offered by Zsidsin et al., as cited by Rao & Goldsby (2009, p. 98) that few studies exist that explore the key constructs necessary for assessing deliver chain risk. The research gap between risk identification and risk mitigation, therefore, needs to be worked out by selecting Saudi Arabia, a country of the Middle-East. The suit of Saudi Arabia can set the pace for creating better understanding on TPL risks in an emerging field, as developed Western countries have already seen it natural event along the complexity of the risk types and their management. Further, selecting a country as a methodology would help in finding ways of improving the current positioning of the TPL firms in Saudi Arabia. Addition of electronic interface to the TPL industry has increased its liability risks, such as failure to securely provide reach and connectivity to its internet and extranet portals. These risk exposures are unforeseen and are not always binding by contracts. As customers of TPLs are equally technology-efficient, therefore, exhibit least inclination to be partners in liability risks with TPLs, thus, increasing risk exposure of TPLs. For instance, websites of TPLs are very interactive for providing a good user experience to their customers for selecting freight carriers, checking about shipments or stock, and sending shipment instructions. Thus, various liability risks could be related to TPL functions over internet reach for completing shipping, billing, and claims documentation procedures, tariffs, posting of carrier, stock, tracking, and management of transportation, load, administrative services, claims and so forth among others (Marsh USA, 2007) . Although TPL network has become highly globalised but considering the country-specific example, which in this case is Saudi Arabia, one can see that growth of TPL in the Middle East countries is comparatively not as dynamic as in developed countries of Europe and the USA. When it comes to approximation of TPL risks and risks mitigation in Saudi Arabia, one finds handicapped due to the lack of empirical data across the whole Arab region although research reveals that overall