In today’s highly competitive, extremely variable and really dynamic environment, many firms are seeking solutions. Supply chain management becomes more sophisticated and the difference between what firms want to achieve and what they can do in-house continues to grow, firms begin to realize that doing the right thing becomes more interesting than doing everything.Accordingly, they are becoming better focused and more specialized by outsourcing and offshoring activities that are far from their core businesses. In many cases firms decide to outsource this function in whole or in part to agents or third party logistics firms.

Using this concept of offshoring and outsourcing answer the following questions by taking any Saudi Local company or any Multinational company.

Question:

What are Third party logistics firms?
Explain the motivational factors for going internationally?
On what ground companies choose developing countries location for offshoring? Use examples. (Mention the country and decisive factors)
Assess the reasons for using third party logistics service in Saudi Arabia? Using examples, Explain