A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis.

A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis.

The companies providing the services would be referred to as:

A. fourth party logistics providers.

B. third party logistics providers.

C. retail services providers.

D. distribution services providers.

View Answer

Answer: B

Explanation:

Context: The manufacturer is outsourcing transportation and return processing functions to external

companies.

Options Breakdown:

A. Fourth party logistics providers: Typically manage multiple 3PLs and provide comprehensive supply chain solutions.

B. Third party logistics providers: Offer specific logistics services, such as transportation and return processing, on a contractual basis.

C. Retail services providers: Focus on services for retail operations, not logistics.

D. Distribution services providers: While they handle distribution, the term is not as specific as 3PL for the services described.

Correct Answer Justification: Third party logistics providers (3PLs) specialize in outsourced logistics services like transportation and returns processing, fitting the scenario described.

Reference: Logistics and supply chain management literature

Definitions and roles of 3PLs in industry standards