Logistics Providers: Traditional and Virtual (Essay Sample)
1.Describe and assess Exxon-Mobil Corporation, if any, with 4PLs ("virtual" logistics service providers [VLSP]). 2.Determine if your organization could more effectively use the services of 4PLs (VLSP). If your organization has no experience with 4PLs (VLSP), discuss the major advantages and disadvantages that might result from using a VLSP for the organization.source..
EXXON MOBIL CORP
Date of Submission
Exxon Mobil Corp and "virtual" Logistics Service Providers
Exxon Mobil Corporation is one of the largest oil multinationals in the world. As a parent company of Esso and Mobil in various countries around the world, the corporation is headquartered in Irving, Texas, in the United States of America. Exxon Mobil has not fully adopted the use of "virtual" logistics service providers or what is commonly termed as 4PLS or VLSP. However, the corporation is making steps towards the realization of a system that fully adopts this form of logistical management so as to go along with the times (Dinwoodie et al, 2013).
One of the main advantages of adopting the use of 4PLS for business is tha fact that the cost of management that goes into the normal methods of execution is cut down dramatically and therefore enabling the organization to save more resources. These resources can therefore be transferred to other departments for other use such as development of products.
The other major advantage is that the adoption VLSP also improves the efficiency of the organization because the management have less issues to worry them. When outsourcing, the rest of non-core logistical operations are handled by third party meaning that the management baggage is no longer within the main organization (Tate et al, 2013).
The main disadvantage is the challenge of maintaining a uniform brand or tempo for the operations of the company. For one, because the services are being handled by a third party, it may be difficult for this third party to understand the philosophy of the main company or execute the main company.
Second disadvantage is that if Exxon Mobil chooses to adopt the services of virtual logistics operator, it risks havi...
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