APICS Certified Supply Chain Professional (CSCP) — Question 303

A company wants to rapidly expand distribution internationally. The company has decided that distribution is not a core capability. Which of the following logistics strategies is most appropriate?

Answer options

• A. Develop distribution and transportation as core capabilities
• B. Redesign the distribution processes to eliminate redundant logistics activities
• C. Contract with a third-party logistics (3PL) provider for warehousing
• D. Contract with a fourth-party logistics (4PL) provider for integrated logistics services

Correct answer: C

Explanation

The correct answer is C because partnering with a third-party logistics provider allows the company to leverage existing expertise and infrastructure for warehousing, enabling rapid expansion without the need to develop internal capabilities. Options A and B are not suitable since they focus on enhancing internal capabilities, which contradicts the company's decision. Option D, while also viable, suggests a more complex solution that may not be necessary for the company's immediate needs.