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?

Question

Quizplus · Accepted Answer

Since the company has decided that distribution is not a core capability, the most appropriate strategy would be to contract with a third-party logistics (3PL) provider for warehousing. This allows the company to rapidly expand distribution internationally without investing in developing distribution and transportation capabilities in house. The 3PL provider would be responsible for all logistics activities including warehousing, transportation, and distribution, which allows the company to focus on their core competencies. Redesigning distribution processes may help streamline operations, but it would not necessarily address the issue of rapidly expanding internationally. Contracting with a fourth-party logistics (4PL) provider would be an option if the company wanted more comprehensive logistics services including supply chain management as well.

A Company Wants to Rapidly Expand Distribution Internationally