APICS Certified Supply Chain Professional (CSCP) — Question 316

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:

Answer options

• A. fourth party logistics providers.
• B. third party logistics providers.
• C. retail services providers.
• D. distribution services providers.

Correct answer: B

Explanation

The correct answer is B, as third party logistics providers (3PL) are companies that manage logistics services for other businesses, including transportation and return processing. Option A, fourth party logistics providers, typically refers to firms that manage multiple 3PLs and not direct transportation services. Options C and D are not commonly used terms for companies that handle logistics in the context described.