Question 1

What is a reason for using 3PL services?
A) Outsourcing is not a corporate philosophy
B) Logistics is a core competency of the company
C) Company needs greater process flexibility
D) Company requires shipment security

Accepted Answer

3PL services offer greater process flexibility, allowing companies to adapt more easily to market changes, demand fluctuations, or expansion into new territories without the need for significant investment in logistics infrastructure.

Question 2

What types of 3PLs provide services such as freight payment, freight bill auditing, and freight claims management?
A) Forwarder based
B) Financial based
C) Distribution based
D) Transportation based

Accepted Answer

Financial based 3PLs specialize in services such as freight payment, freight bill auditing, and freight claims management, focusing on the financial and administrative aspects of logistics.

Question 3

What type of special service involves uniting shipments from multiple suppliers and avoids the need for traditional warehousing?
A) Dedicated contract carriage
B) Household goods movement
C) Merge in transit
D) Drayage

Accepted Answer

Merge in transit combines shipments from various suppliers, eliminating the need for traditional warehousing by directly sending the combined shipment to its final destination.

Question 4

This step in establishing and sustaining a 3PL relationship involves determining your area of core competency and how a 3PL may help you create a competitive advantage.
A) Strategic assessment
B) Decision to form relationship
C) Evaluation of alternatives
D) Structuring of an operating model

Accepted Answer

The answer of This step in establishing and sustaining a...

Question 5

Which of the following is not a concern with a non-asset based 3PL?
A) Significant internal capacity
B) Complexity of the relationship
C) Lack of flexibility
D) Ability to create internal economy of scale

Accepted Answer

The answer of Which of the following is not a...

Question 6

What type of 3PL traces their origin to freight movement via truck, rail, or other?
A) Forwarder based
B) Financial based
C) Distribution based
D) Transportation based

Accepted Answer

Transportation-based 3PLs specialize in the movement of goods and trace their origins to freight movement via truck, rail, or other modes of transportation. They provide services such as freight forwarding, brokerage, and carrier operations.

Question 7

Which of the following is considered the top customer need of 3PL users?
A) Continuous improvement capabilities
B) Information technology capabilities
C) E-commerce fulfillment capabilities
D) Lifecycle returns management capabilities

Accepted Answer

Information technology capabilities are often considered the top customer need of 3PL (Third-Party Logistics) users. This is because advanced IT systems enable better tracking, management, and optimization of logistics and supply chain operations, which are critical for efficiency and customer satisfaction.

Question 8

3PLs are typically categorized based upon their foundational service offering such as:
A) Transportation, Distribution, and Marketing
B) Forwarder, Distribution, and Human Resources
C) Transportation, Distribution, and Forwarder
D) Human Resources, Marketing, and Distribution

Accepted Answer

3PLs (Third-Party Logistics providers) are primarily categorized based on their foundational service offerings, which include Transportation, Distribution, and Forwarding services. These categories reflect the core logistics and supply chain management services that 3PLs provide to businesses.

Question 9

What group of 3PLs does not own equipment, they instead arrange transportation services?
A) Forwarder based
B) Financial based
C) Distribution based
D) Transportation based

Accepted Answer

Forwarder-based 3PLs do not own transportation equipment themselves; instead, they specialize in arranging transportation and logistics services for their clients by leveraging relationships with carriers and other service providers.

Question 10

Which strategic requirement involves 3PLs supporting home delivery, manufacturer direct delivery, and alternate site delivery?
A) International expertise
B) Sustainability knowledge
C) Omni-channel agility
D) Talent availability

Accepted Answer

Omni-channel agility is required for 3PLs to support various delivery methods such as home delivery, manufacturer direct delivery, and alternate site delivery, as it involves seamlessly integrating and managing logistics across multiple channels.

Question 11

Companies may smartly outsource all of the following except:
A) Information technology
B) Core activities
C) Manufacturing
D) Logistics

Accepted Answer

Outsourcing core activities is generally not recommended because these are the central functions that define the business and its competitive advantage. Outsourcing these could compromise the company's integrity and control over its primary operations.

Question 12

What is one of the strengths of an Asset Based 3PL?
A) Ability to provide direct and immediate solutions
B) Flexibility with respect to fixed assets
C) Not limited to internal infrastructure
D) Likely to create innovative solutions

Accepted Answer

Asset Based 3PLs have the advantage of providing direct and immediate solutions due to their ownership of assets such as trucks, warehouses, etc., which allows for more control over the entire logistics process.

Question 13

As of 2013 the 3PL industry produced revenues of:
A) $704 Billion
B) $487 Billion
C) $74 Trillion
D) $998 Million

Accepted Answer

As of 2013, the 3PL (Third-Party Logistics) industry produced revenues of approximately $704 billion, reflecting the significant role it plays in global supply chain management.

Question 14

What group of service providers is organized to move e-commerce delivery of goods to consumers' homes?
A) Pool distributor
B) Last mile delivery
C) Household goods movement
D) Dedicated contract carriage

Accepted Answer

The answer of What group of service providers is organized...

Question 15

Between 2000 and 2017, U.S. spending on 3PL service increased by:
A) $81 billion
B) $91 billion
C) $100 billion
D) $116 billion

Accepted Answer

Between 2000 and 2017, U.S. spending on third-party logistics (3PL) services increased by $116 billion, reflecting significant growth in the logistics industry and the increasing reliance of businesses on outsourced logistics services.

Question 16

What type of service involves local transportation of containerized cargo?
A) Merge in transit
B) Surface freight forwarding
C) Intermodal marketing
D) Drayage

Accepted Answer

Drayage refers to the specific service within the logistics and transportation industry that involves the transport of goods over a short distance, often as part of a longer overall move, such as from a ship to a warehouse. It is commonly associated with the local transportation of containerized cargo.

Question 17

According to the Penn State-Capgemini study what percentage of 3PL users state that their 3PL relationships are successful?
A) 97%
B) 90%
C) 86%
D) 75%

Accepted Answer

The answer of According to the Penn State-Capgemini study what...

Question 18

According to the book, 3PL spending is highest in:
A) North America
B) Europe
C) Asia-Pacific
D) Latin America

Accepted Answer

The book indicates that the Asia-Pacific region has the highest 3PL (third-party logistics) spending due to its large manufacturing base and growing e-commerce market.

Question 19

What type of 3PL originated from the public or contract warehousing business?
A) Forwarder based
B) Financial based
C) Distribution based
D) Transportation based

Accepted Answer

Distribution based 3PLs originated from the public or contract warehousing business, focusing on managing the distribution and storage aspects of the supply chain.

Question 20

Which of the following companies do not use 3PLs?
A) Procter and Gamble
B) Walmart
C) General Motors
D) General Morots, Walmart and Procter and Gamble use 3PLs

Accepted Answer

The statement in option D is incorrect because all the companies listed (Procter and Gamble, Walmart, and General Motors) use Third-Party Logistics (3PLs) services to manage parts of their supply chain and logistics operations.

Quiz 9: Third Party Logistics

What is a reason for using 3PL services?

What types of 3PLs provide services such as freight payment, freight bill auditing, and freight claims management?

What type of special service involves uniting shipments from multiple suppliers and avoids the need for traditional warehousing?

This step in establishing and sustaining a 3PL relationship involves determining your area of core competency and how a 3PL may help you create a competitive advantage.

Which of the following is not a concern with a non-asset based 3PL?

What type of 3PL traces their origin to freight movement via truck, rail, or other?

Which of the following is considered the top customer need of 3PL users?

3PLs are typically categorized based upon their foundational service offering such as:

What group of 3PLs does not own equipment, they instead arrange transportation services?

Which strategic requirement involves 3PLs supporting home delivery, manufacturer direct delivery, and alternate site delivery?

Companies may smartly outsource all of the following except:

What is one of the strengths of an Asset Based 3PL?

As of 2013 the 3PL industry produced revenues of:

What group of service providers is organized to move e-commerce delivery of goods to consumers' homes?

Between 2000 and 2017, U.S. spending on 3PL service increased by:

What type of service involves local transportation of containerized cargo?

According to the Penn State-Capgemini study what percentage of 3PL users state that their 3PL relationships are successful?

According to the book, 3PL spending is highest in:

What type of 3PL originated from the public or contract warehousing business?

Which of the following companies do not use 3PLs?