Deck 12: Third Party Logistics

Question 1

This step in establishing and sustaining a 3PL relationship involves determining your area of core competency and how a 3PL may form a strategic fit with you.

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

Answer 1

B

Question 2

Which of the following companies do not use 3PLs?

A) Procter and Gamble
B) Walmart
C) Cap-Gemini
D) Both Walmart and Procter and Gamble use 3PLs

Answer 2

D

Question 3

In Europe 3PLs are used most often for:

A) Domestic transportation
B) International transportation
C) Reverse logistics
D) Customer service

Answer 3

A

Question 4

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

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

Question 5

Between 1996 and 2007 U.S.spending on 3PL service increased by:

A) $81 Billion
B) $91 Billion
C) $100 Billion
D) $122 Billion

Question 6

Which of the following is considered the top customer challenge in dealing with a 3PL?

A) Lack of continuous improvement
B) Service level commitment not realized
C) Cost reduction not realized
D) Lack of global capability

Question 7

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

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

Question 8

What types of 3PLs provide services such as online freight brokerage services as well as cargo planning?

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

Question 9

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 10

Companies may smartly outsource all of the following except:

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

Question 11

According to the Georgia Tech-Capgemini study what percentage of companies are satisfied to extremely satisfied with their 3PL service provider?

A) 50%
B) 98%
C) 86%
D) 75%

Question 12

What type of service involves local transportation of containerized cargo?

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

Question 13

This strategic challenge involves determining the extent to which the company will rely on a 3PL?

A) Service requirements
B) Coordination role
C) Technology integration
D) Goal cohesion

Question 14

What group of service providers is organized to move the goods of people and business,and they are often called van lines?

A) Pool distributor
B) Merge in transit specialist
C) Household goods movement
D) Dedicated contract carriage

Question 15

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 16

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

Question 17

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

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

Question 18

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) Dyage

Question 19

As of 2007 the 3PL industry produced revenues of:

A) $400 Million
B) $487 Billion
C) $18.6 Billion
D) $1.2 Trillion

Question 20

What group of 3Pls do not own equipment,they instead arrange transportation services?

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

Question 21

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 22

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

Question 23

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

Question 24

What is the primary role of an Air Freight Forwarder?

Question 25

An asset based 3PL can be defined as:

Question 26

List five of the ten customer challenges with 3PLs

Question 27

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

Question 28

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.

Question 29

Describe the potential strategic issues that may arise when dealing with a 3PL.

Question 30

Describe the categories of 3PL providers.

Question 31

A financial base 3PL does what?

Question 32

Explain the concept of partnership drivers,list four partnership drivers.

Question 33

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

Question 34

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