Discover the most appropriate logistics strategy for a company rapidly expanding distribution internationally without considering it a core capability. Explore the options of developing in-house capabilities, redesigning processes, or contracting with 3PL or 4PL providers. Gain insights from an APICS CSCP exam question and expert explanation.
Table of Contents
Question
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?
A. Develop distribution and transportation as core capabilities
B. Redesign the distribution processes to eliminate redundant logistics activities
C. Contract with a third-party logistics (3PL) provider for warehousing
D. Contract with a fourth-party logistics (4PL) provider for integrated logistics services
Answer
D. Contract with a fourth-party logistics (4PL) provider for integrated logistics services
Explanation
When a company wants to rapidly expand distribution internationally and does not consider distribution a core capability, the most appropriate logistics strategy is to contract with a fourth-party logistics (4PL) provider for integrated logistics services.
A 4PL provider offers a comprehensive supply chain solution by managing and integrating the services of multiple 3PL providers, as well as other service providers, to deliver a seamless end-to-end logistics experience. This allows the company to leverage the expertise and resources of the 4PL provider without having to develop the capabilities in-house or manage multiple contracts with different service providers.
By outsourcing the entire logistics function to a 4PL, the company can focus on its core competencies while the 4PL handles the complexities of international distribution, including transportation, warehousing, customs clearance, and other logistics activities. This strategy enables rapid expansion without the need for significant investments in logistics infrastructure and expertise.
APICS Certified Supply Chain Professional CSCP certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the APICS Certified Supply Chain Professional CSCP exam and earn APICS Certified Supply Chain Professional CSCP certification.