A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of its trucks and now purchases transportation services from fleet operators. This is an example of which of the following strategies?

Question

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The strategy being used is using a third-party logistics provider, where the wholesaler is outsourcing its transportation needs to a company specializing in transportation services. This allows the wholesaler to focus on its core competency of wholesaling, while the transportation company handles the logistics of delivery. The other options, selling and leasing back equipment, renting equipment on consignment, and using an owner-operator fleet, all involve the wholesaler retaining ownership and/or control of the transportation assets, which is not the case in this scenario.

A Large Wholesaler Formerly Owned a Number of Delivery Trucks