Deck 9: Third Party Logistics

Question 1

What is a reason for using 3PL services?

A) Outsourcing is not a corporate philosophy
B) Logistics is a core competency of the company
C) Company needs greater process flexibility
D) Company requires shipment security

Answer 1

Company needs greater process flexibility

Question 2

What types of 3PLs provide services such as freight payment, freight bill auditing, and freight claims management?

A) Forwarder based
B) Financial based
C) Distribution based
D) Transportation based

Answer 2

Financial based

Question 3

What type of special service involves uniting shipments from multiple suppliers and avoids the need for traditional warehousing?

A) Dedicated contract carriage
B) Household goods movement
C) Merge in transit
D) Drayage

Answer 3

Merge in transit

Question 4

This step in establishing and sustaining a 3PL relationship involves determining your area of core competency and how a 3PL may help you create a competitive advantage.

A) Strategic assessment
B) Decision to form relationship
C) Evaluation of alternatives
D) Structuring of an operating model

Question 5

Which of the following is not a concern with a non-asset based 3PL?

A) Significant internal capacity
B) Complexity of the relationship
C) Lack of flexibility
D) Ability to create internal economy of scale

Question 6

What type of 3PL traces their origin to freight movement via truck, rail, or other?

A) Forwarder based
B) Financial based
C) Distribution based
D) Transportation based

Question 7

Which of the following is considered the top customer need of 3PL users?

A) Continuous improvement capabilities
B) Information technology capabilities
C) E-commerce fulfillment capabilities
D) Lifecycle returns management capabilities

Question 8

3PLs are typically categorized based upon their foundational service offering such as:

A) Transportation, Distribution, and Marketing
B) Forwarder, Distribution, and Human Resources
C) Transportation, Distribution, and Forwarder
D) Human Resources, Marketing, and Distribution

Question 9

What group of 3PLs does not own equipment, they instead arrange transportation services?

A) Forwarder based
B) Financial based
C) Distribution based
D) Transportation based

Question 10

Which strategic requirement involves 3PLs supporting home delivery, manufacturer direct delivery, and alternate site delivery?

A) International expertise
B) Sustainability knowledge
C) Omni-channel agility
D) Talent availability

Question 11

Companies may smartly outsource all of the following except:

A) Information technology
B) Core activities
C) Manufacturing
D) Logistics

Question 12

What is one of the strengths of an Asset Based 3PL?

A) Ability to provide direct and immediate solutions
B) Flexibility with respect to fixed assets
C) Not limited to internal infrastructure
D) Likely to create innovative solutions

Question 13

As of 2013 the 3PL industry produced revenues of:

A) $704 Billion
B) $487 Billion
C) $74 Trillion
D) $998 Million

Question 14

What group of service providers is organized to move e-commerce delivery of goods to consumers' homes?

A) Pool distributor
B) Last mile delivery
C) Household goods movement
D) Dedicated contract carriage

Question 15

Between 2000 and 2017, U.S. spending on 3PL service increased by:

A) $81 billion
B) $91 billion
C) $100 billion
D) $116 billion

Question 16

What type of service involves local transportation of containerized cargo?

A) Merge in transit
B) Surface freight forwarding
C) Intermodal marketing
D) Drayage

Question 17

According to the Penn State-Capgemini study what percentage of 3PL users state that their 3PL relationships are successful?

A) 97%
B) 90%
C) 86%
D) 75%

Question 18

According to the book, 3PL spending is highest in:

A) North America
B) Europe
C) Asia-Pacific
D) Latin America

Question 19

What type of 3PL originated from the public or contract warehousing business?

A) Forwarder based
B) Financial based
C) Distribution based
D) Transportation based

Question 20

Which of the following companies do not use 3PLs?

A) Procter and Gamble
B) Walmart
C) General Motors
D) General Morots, Walmart and Procter and Gamble use 3PLs

Question 21

Describe the potential strategic needs of 3PL users.

Question 22

An asset based 3PL can be defined as:

Question 23

Describe the categories of 3PL providers.

Question 24

When deciding to form a strategic partnership the book recommends performing an audit of needs and overall strategies with regard to logistics operations. What is the goal of the audit, and what types of information should come from the audit?

Question 25

When the market for transportation services becomes very competitive, ___________ becomes scare to companies.

A) 3PL usage
B) technology
C) transportation capacity
D) metric tons

Question 26

Two basic types of lease agreements for private trucking are:

A) Full service and finance
B) Low interest and high interest
C) Cost and direct
D) Working and renting

Question 27

Shipments for over the road carriers that average 45,000 pounds require ____________.

A) 2 axle equipment
B) 5 axle tractor trailer combination
C) single axle combination
D) only a tractor trailer

Question 28

Outline the steps involved in establishing and sustaining a 3PL relationship.

Question 29

According to the text book the definition of a 3PL is:

Question 30

Describe the strengths and weaknesses of a non-asset based 3PL

Question 31

List five of the eight elements of a well structured 3PL operating model.

Question 32

Describe the future issues and challenges facing the 3PL industry.

Question 33

Explain the concept of partnership drivers and identify four partnership drivers.

Question 34

While many 3PLs have expertise in some of the special service areas, leading 3PLs are pursuing two additional capabilities, these are:

Question 35

Over the road carriers are usually paid on the basis of the ___________.

A) weight of their equipment
B) days on the road
C) government rate tables
D) mile driven

Question 36

A financial base 3PL does what?

Question 37

Describe the strengths and weakness of an asset based 3PL.

Question 38

What is the primary role of an Air Freight Forwarder?

Question 39

Some companies decide to avoid carriers and 3PLs and retain a __________ for their shipping needs.

A) private fleet
B) unlabeled carriers
C) government asset
D) 4PL

Question 40

Please list and explain four of the ten intermediary and special services (as listed in the textbook) which are offered by 3PLs to their customers.