Transportation Final Exam Study Guide
Questions well answered to pass
Ch. 9 - correct answer ✔✔
What is a 3PL? - correct answer ✔✔-third party logistics
-outsource logistics company
-an external supplier that performs or manages the performance of all of part of a company's
logistics functions
Describe each of the 5 categories of 3PL's on the basis of their foundation service offerings -
correct answer ✔✔1PL: shipper or consignee
2PL: individual, asset-based provider or logistics services
3PL: firm that manages/provides multiple logistics for use by customer
4PL: services and consulting
5PL: companies that aggregate demands of 3PLs into bulk volumes to negotiate
LSP: logistics service providers can refer to any or all of the above
Asset based - correct answer ✔✔own assets and run logistics
, pros:
-readily available capacity, permanent employees, and direct control of the customers' freight
cons:
-potential for bias toward 3PLs own internal resources in developing solutions
Non-asset based - correct answer ✔✔logistics services
pros:
more flexible, unbiased
cons:
-subject to competition for capacity from external providers, more intensive relationship
management required
What are the top 3 activities outsourced to 3PL's in the US? - correct answer ✔✔1. domestic
transportation
2. warehousing
3. international transportation
Reasons and non reasons for using 3PLs - correct answer ✔✔reasons:
-opportunity for cost reduction
-ability to focus on core competencies
reasons not to:
-logistics in a core competency of company
-control over outsourced functions would diminish
Questions well answered to pass
Ch. 9 - correct answer ✔✔
What is a 3PL? - correct answer ✔✔-third party logistics
-outsource logistics company
-an external supplier that performs or manages the performance of all of part of a company's
logistics functions
Describe each of the 5 categories of 3PL's on the basis of their foundation service offerings -
correct answer ✔✔1PL: shipper or consignee
2PL: individual, asset-based provider or logistics services
3PL: firm that manages/provides multiple logistics for use by customer
4PL: services and consulting
5PL: companies that aggregate demands of 3PLs into bulk volumes to negotiate
LSP: logistics service providers can refer to any or all of the above
Asset based - correct answer ✔✔own assets and run logistics
, pros:
-readily available capacity, permanent employees, and direct control of the customers' freight
cons:
-potential for bias toward 3PLs own internal resources in developing solutions
Non-asset based - correct answer ✔✔logistics services
pros:
more flexible, unbiased
cons:
-subject to competition for capacity from external providers, more intensive relationship
management required
What are the top 3 activities outsourced to 3PL's in the US? - correct answer ✔✔1. domestic
transportation
2. warehousing
3. international transportation
Reasons and non reasons for using 3PLs - correct answer ✔✔reasons:
-opportunity for cost reduction
-ability to focus on core competencies
reasons not to:
-logistics in a core competency of company
-control over outsourced functions would diminish
