Print Сite this

Use of Third Parties for Logistical Purposes for SpaceX


Third-Party Logistics (3PLS) is a service that enables one to perform prepared logistics from warehousing, all the way through delivery creating time for a company to concentrate on other sections of the business. 3PLS companies offer other additional services that deal with the logistics of the supply chain (Ecer, 2018). 3PLS can provide SpaceX with services such as freight forwarding, packaging, order fulfillment, inventory forecasting, picking and packing, warehousing and transportation (Ecer, 2018). Therefore, 3PLS is efficient for enabling SpaceX to focus on other business aspects of product development, marketing and increasing sales.

We will write a
custom essay
specifically for you

for only $16.05 $11/page
308 certified writers online
Learn More

Benefits of 3PLS to the Organization

The use of 3PLS services will be beneficial to SpaceX since their services leave companies with more time and resources. For instance, there will be a decreased cost of production because 3PLS offers additional leverages with freight companies compared to individual shippers (Ecer, 2018). 3PLS companies work with carriers on behalf of customers and thus are able to discuss the cost of transportation based on order frequency and volume of goods transported (Ecer, 2018). Therefore, using 3PLS in supply chain management will provide the company with extra time to focus on other important areas for business growth.

The use of 3PLS will enable the company to offer an improved customer experience. The expectations of most customers are same-day or next-day shipping standards (Ecer, 2018). Using 3PLS in supply chain management will enable the company to offer fast shipping no matter where the order is being sent (Ecer, 2018). Therefore, 3PLS will provide SpaceX Company with an opportunity to send its products across a wide network without considering customer location.

3PLS will make SpaceX Company gain immediate knowledge and expertise in the field of the supply chain. If an organization is starting out, there is no other company provides helpful assistance than the one with expert knowledge in the field of the supply chain (Ecer, 2018). Therefore, handing it over to experienced service providers such as 3PLS will make a huge difference in how an organization operates creating room to focus on increasing the overall value to customers.

Using 3PLS enables a company to stop focusing on international logistics. For companies operating internationally, 3PLS will be in charge of all duties, customs, documentation and other issues that arise at the border (Ecer, 2018). This can lead to increased costs and interfere with a company’s shipments (Ecer, 2018). Therefore, 3PLS will help SpaceX save time that would have been used trying to work out complicated rules used in different countries.

Supplier Relationship Management

Supplier Relationship Management (SRM) is an efficient supplier evaluation in terms of capabilities, and strengths with respect to the general strategy of a business. SRM identifies the activities a company can involve in with various suppliers (Amoako-Gyampah et al., 2019). It also involves planning and execution of all interactions with its suppliers in a harmonized fashion across the relationship life cycle (Amoako-Gyampah et al., 2019). According to Amoako-Gyampah et al. (2019), this aims at capitalizing on the value gained via those interactions. Therefore, the role of SRM is the creation of two-way, mutually valuable associations with the identified supplier to provide the highest level of competitive advantage that cannot be achieved through the independent operation.

The Purpose of Maintaining Relationships with Suppliers

The maintenance of the efficient relationship between the SpaceX company with its suppliers is essential because it will lead to the creation of ideas, and feedback that will be shared between the two parties. According to Vázquez-Casielles et al. (2017), maintaining these relationships will create opportunities for enhancing operations; customer service improvement, decreasing the cost of production as well as streamlining the supply chain (Vázquez-Casielles et al., 2017). Moreover, SpaceX company upholding effective supplier relationships will result in increased supplies as part of the company enhancement which further improves customer service as well as the company’s efficiency (Vázquez-Casielles et al., 2017). Therefore, having a productive relationship with suppliers will present the company with the required supporter who can provide efficient encouragement for the business success.

Get your
100% original paper
on any topic

done in as little as
3 hours
Learn More

Techniques for Maintaining Good Supplier Relationship

There are various techniques that SpaceX company can employ to maintain an efficient relationship with its suppliers. These methods comprise open and effective communication as the heart of any strong business relationship (Vázquez-Casielles et al., 2017). Upholding respect with the suppliers, creating mutual appreciation and willingness to consider the requirements of the other party, and openness between the company and the supplier ensure an effective relationship with one another (Vázquez-Casielles et al., 2017). Additionally, building trust is crucial since it holds the strong relationship together giving the supplier and buyer confidence to create ways of working and solving problems (Vázquez-Casielles et al., 2017). Therefore, the maintenance of an efficient relationship between the company and its suppliers is vital since it enables the two parties to create working ways to accommodate each other.

Type of Database to Use to Document Information about Suppliers

Scanmarket’s Supply Base Management (SBM) is an advantageous database for storing supplier information. SBM provides professionals in procurement the ability to maintain an efficient overview of supplier selection, and compliance, and decrease the time needed to identify suppliers (Natarajan & Perumalsamy, 2018). The design of SBM is beneficial to SpaceX company because the company will be able to acquire a single repository for all supplier information (Natarajan & Perumalsamy, 2018). SBM will further advance search, filtering and reporting on all supplier information as well as providing 21 languages supported by the platform (Natarajan & Perumalsamy, 2018). Therefore, the SBM database is the most efficient for keeping supplier information in SpaceX company.


Amoako-Gyampah, K., Boakye, K. G., Adaku, E., & Famiyeh, S. (2019). Supplier relationship management and firm performance in developing economies: A moderated mediation analysis of flexibility capability and ownership structure. International Journal of Production Economics, 208, 160-170.

Ecer, F. (2018). Third-party logistics (3PLs) provider selection via Fuzzy AHP and EDAS integrated model. Technological and Economic Development of Economy, 24(2), 615-634.

Natarajan1, J., & Perumalsamy, R. (2021). Innovative Heuristics Modeling for Dynamic Supply Base Optimization. International Journal of Computational Engineering & Management, 21(2), 15-19.

Vázquez-Casielles, R., Iglesias, V., & Varela-Neira, C. (2017). Manufacturer–distributor relationships: Role of relationship-specific investment and dependence types. Journal of Business & Industrial Marketing, 32(8), 1215-1260.

Cite this paper

Select style


StudyCorgi. (2022, August 22). Use of Third Parties for Logistical Purposes for SpaceX. Retrieved from


StudyCorgi. (2022, August 22). Use of Third Parties for Logistical Purposes for SpaceX.

Work Cited

"Use of Third Parties for Logistical Purposes for SpaceX." StudyCorgi, 22 Aug. 2022,

* Hyperlink the URL after pasting it to your document

1. StudyCorgi. "Use of Third Parties for Logistical Purposes for SpaceX." August 22, 2022.


StudyCorgi. "Use of Third Parties for Logistical Purposes for SpaceX." August 22, 2022.


StudyCorgi. 2022. "Use of Third Parties for Logistical Purposes for SpaceX." August 22, 2022.


StudyCorgi. (2022) 'Use of Third Parties for Logistical Purposes for SpaceX'. 22 August.

This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly.

If you are the original creator of this paper and no longer wish to have it published on StudyCorgi, request the removal.