Third Party Supply Industry. The First One

¶ … third party supply industry. The first one highlights on the appropriate size for companies within the third party supply chain. The second one is on XPO Logistics which is a third party logistics firm. These two articles show what the third party logistics industry is all about. This paper is a summary of two articles within the supply distribution dealing with frozen products mainly beef manufacturing products. The paper will show how the third party distribution chain works and should be in different companies. The third party supply industry involves a company supports goods in their warehouse and the warehouse sells these goods to other retailers or restaurants but these restaurants are not aware of their suppliers.

An example of a third party supply company is Macca's supply chain. The organization uses a supply chain model that is based on a culture of partnership and collaboration. This makes it possible for the supply chain to serve their customers consistently with food that is safe and of high quality. It is important for the company that their suppliers operate in a sustainable and profitable business and at the end of the day rip the benefits accrued from their partner MacDonald's Australia. Another thing that the company focusses on is to ensure that they source their products in a manner that is ethical and responsible and at the end of the day contribute to the development of agriculture and other food manufacturing processes that can be sustained. When it comes to the economic aspect of this third party supply chain, Macca is committed to ensure that they support the manufacturers and producers in Australia. Their first priority is sourcing produce from within Australia. It is important to note that MacDonald does not own any business that supplies to Macca and they have long-term relationships in place with their suppliers. This means that Macdonald does not know who supplies the beef to Macca. They just receive the supplies directly from Macca without knowing where they get their supplies from. Macca ensures that they work closely with their suppliers in order to ensure that they provide this supply chain with an uninterrupted long-term supply of food that is of high quality (MacDonald's Australia, 2014).

The article third party Due Diligence-what can we learn from the Horse Meat Scandal Engulfing Europe highlights on the measures that should be taken to ensure that supplies from the third party industry are safe. In the year 2013, there was a scandal that involved horsemeat being found in supermarkets, fast foods chains and processes food brands. This can easily happen because in the third party supply logistics the retailers do not know the exact source of the products they are being supplied. The initial analysis indicated that there was a weak supply chain and third party vendor management process. This calls for an improvement within the third party due diligence process (Alagha, 2013).