A manufacturer or supplier uses an independent third party to manage an entire function of the logistics system,such as transportation,warehousing,or order processing.Which of the following BEST describes this?

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Quizplus · Accepted Answer

Contract logistics involves outsourcing a particular function of the logistics system to a third party, such as transportation or warehousing. This involves creating a contractual agreement between the manufacturer/supplier and the third-party logistics provider to manage the logistics process on their behalf. Direct sourcing refers to purchasing directly from the source rather than going through a middleman, freight forwarding involves arranging the shipment of goods from one place to another, and intermodal sourcing involves using multiple transportation modes for the shipment of goods. None of these options accurately describe outsourcing an entire function of the logistics system to a third party.

A Manufacturer or Supplier Uses an Independent Third Party to Manage