LSCM 4560 FINAL QUESTIONS WITH VERIFIED
ANSWERS
The definition for a 3PL has yet to receive common acceptance. In this class, we will
define a 3PL as: - Answers - a firm that supplies and coordinates logistics functions
across multiple links in the logistics supply chain.
The most frequently outsourced logistics functions involve: - Answers - Movement and
management of freight
When a 3PL contracts with other firms to provide transportation and logistics services
rather than owning the required equipment or facilities, the 3PL is considered to be: -
Answers - Non-asset based
Most third party logistics providers have their origins and greatest level of expertise in a
specific logistic activity. As a result, third party logistics providers are categorized on the
basis of their service offerings. Which of the following was not identified as one of the
types of third party logistics providers? - Answers - Fulfillment based
Armstrong & Associates estimated US 3PL revenues in 2013 to be: - Answers - $141
billion
Transplace is a 3PL which specializes in linking freight from shippers with carriers
capable of moving the freight to its final destination. We would consider Transplace to
be which of the following types of 3PLs: - Answers - Information based
The industries leading in the use of 3PLs include: - Answers - Technology, automotive,
and retailing
Which global region has traditionally demonstrated the greatest acceptance of 3PLs
based on the percent of total logistics expenditures directed to outsourcing? - Answers -
Europe
Which business need is consistently ranked as the top reason for outsourcing logistics
functions? - Answers - cost control and reduction
Effective 3PL relationships are characterized by which of the following? - Answers -
shared risk and investment
A substantial number of organizations do not use 3PLs. The most frequently cited
reason for not using a 3PL is: - Answers - Cost reductions would not be realized.
, The fourth party logistics (4PL) provider concept sometimes appears in discussions
regarding 3PLs. What is the key difference between a 3PL and a 4PL? - Answers -
3PLs focus primarily on performing and coordinating logistics activities while 4PLs
manage and coordinate the activities of multiple 3PLs and logistics service providers
(LSPs
Shippers are now taking another look at the private fleet option as part of their supply
chain strategy. A key factor contributing to this is the recognition of private fleets as a: -
Answers - Core competency
Many shippers continue to operate a private fleet despite outsourcing most of their
transportation needs. These shippers have adopted this strategy to: - Answers - Ensure
availability of equipment and drivers
Leverage their private fleet as a means to obtain rate concessions from for-hire carriers
Maintain an in-house competency in transportation
Private carriers differ from their for-hire counterparts by: - Answers - Not serving the
general public
The most common form of private rail transportation consists of: - Answers - Ownership
and leasing of rail cars
The company currently possessing the largest private fleet is: - Answers - Pepsico
The "last resort" advantage of private fleets emenates from: - Answers - The ability to
move goods when a lack of capable for-hire service exists.
Shippers are now taking another look at the private fleet option as part of their supply
chain strategy. A key factor contributing to this is the recognition of private fleets as a: -
Answers - Core competency
Private fleets move approximately what percent of the freight moved by motor carriers?
- Answers - Just under 50 percent
Which of the following is a disadvantage associated with outsourcing the transportation
fleet? - Answers - Operational control
Deregulation of motor carriers in 1980 resulted in: - Answers - Private carriers being
able to act as for-hire carriers
Private water transportation is: - Answers - Common for transport of bulk, large volume
products
Private transportation can be best defined as: - Answers - Any person that transports
goods they own to further a commercial enterprise
ANSWERS
The definition for a 3PL has yet to receive common acceptance. In this class, we will
define a 3PL as: - Answers - a firm that supplies and coordinates logistics functions
across multiple links in the logistics supply chain.
The most frequently outsourced logistics functions involve: - Answers - Movement and
management of freight
When a 3PL contracts with other firms to provide transportation and logistics services
rather than owning the required equipment or facilities, the 3PL is considered to be: -
Answers - Non-asset based
Most third party logistics providers have their origins and greatest level of expertise in a
specific logistic activity. As a result, third party logistics providers are categorized on the
basis of their service offerings. Which of the following was not identified as one of the
types of third party logistics providers? - Answers - Fulfillment based
Armstrong & Associates estimated US 3PL revenues in 2013 to be: - Answers - $141
billion
Transplace is a 3PL which specializes in linking freight from shippers with carriers
capable of moving the freight to its final destination. We would consider Transplace to
be which of the following types of 3PLs: - Answers - Information based
The industries leading in the use of 3PLs include: - Answers - Technology, automotive,
and retailing
Which global region has traditionally demonstrated the greatest acceptance of 3PLs
based on the percent of total logistics expenditures directed to outsourcing? - Answers -
Europe
Which business need is consistently ranked as the top reason for outsourcing logistics
functions? - Answers - cost control and reduction
Effective 3PL relationships are characterized by which of the following? - Answers -
shared risk and investment
A substantial number of organizations do not use 3PLs. The most frequently cited
reason for not using a 3PL is: - Answers - Cost reductions would not be realized.
, The fourth party logistics (4PL) provider concept sometimes appears in discussions
regarding 3PLs. What is the key difference between a 3PL and a 4PL? - Answers -
3PLs focus primarily on performing and coordinating logistics activities while 4PLs
manage and coordinate the activities of multiple 3PLs and logistics service providers
(LSPs
Shippers are now taking another look at the private fleet option as part of their supply
chain strategy. A key factor contributing to this is the recognition of private fleets as a: -
Answers - Core competency
Many shippers continue to operate a private fleet despite outsourcing most of their
transportation needs. These shippers have adopted this strategy to: - Answers - Ensure
availability of equipment and drivers
Leverage their private fleet as a means to obtain rate concessions from for-hire carriers
Maintain an in-house competency in transportation
Private carriers differ from their for-hire counterparts by: - Answers - Not serving the
general public
The most common form of private rail transportation consists of: - Answers - Ownership
and leasing of rail cars
The company currently possessing the largest private fleet is: - Answers - Pepsico
The "last resort" advantage of private fleets emenates from: - Answers - The ability to
move goods when a lack of capable for-hire service exists.
Shippers are now taking another look at the private fleet option as part of their supply
chain strategy. A key factor contributing to this is the recognition of private fleets as a: -
Answers - Core competency
Private fleets move approximately what percent of the freight moved by motor carriers?
- Answers - Just under 50 percent
Which of the following is a disadvantage associated with outsourcing the transportation
fleet? - Answers - Operational control
Deregulation of motor carriers in 1980 resulted in: - Answers - Private carriers being
able to act as for-hire carriers
Private water transportation is: - Answers - Common for transport of bulk, large volume
products
Private transportation can be best defined as: - Answers - Any person that transports
goods they own to further a commercial enterprise
