A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis. The companies providing the services would be referred to as:
Context: The manufacturer is outsourcing transportation and return processing functions to external companies.
Options Breakdown:
A. Fourth party logistics providers: Typically manage multiple 3PLs and provide comprehensive supply chain solutions.
B. Third party logistics providers: Offer specific logistics services, such as transportation and return processing, on a contractual basis.
C. Retail services providers: Focus on services for retail operations, not logistics.
D. Distribution services providers: While they handle distribution, the term is not as specific as 3PL for the services described.
Correct Answer Justification: Third party logistics providers (3PLs) specialize in outsourced logistics services like transportation and returns processing, fitting the scenario described.
[:, Logistics and supply chain management literature, Definitions and roles of 3PLs in industry standards, ]
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