A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system,such as transportation,warehousing,or order processing,is called:
A)outsourcing.
B)mediation.
C)intermediary distribution.
D)benchmarking.

Question

Quizplus · Accepted Answer

Outsourcing refers to the practice of a manufacturer or supplier delegating a specific function of the logistics system to an independent third party. This third party can manage functions such as transportation, warehousing, or order processing, allowing the manufacturer or supplier to focus on their core competencies. Therefore, outsourcing is the best choice for this definition.

A Manufacturer's or Supplier's Use of an Independent Third Party