Question 1

Describe the potential strategic needs of 3PL users.

Accepted Answer

Strategic Innovation: To provide maximum value to the customer base, 3PLs must be innovative and collaborative in solutions development. Information sharing on changing requirements is essential for the two parties to understand the dynamics of the situation at hand. Then, the 3PL must have the willingness and capability to develop novel solutions. They also need to be more proactive in suggesting strategic solutions. Technological Strength:  Customers view technology as a critical capability of 3PL service providers to improve order management, cross-chain communication, enhance shipment visibility and e vent management, and manage day-to-day transportation operations. This need for strong, integrated technology capabilities from their service providers is essential for proactive control of freight as it moves across global supply chains. Capacity Access: When domestic and global economies are strong; the market for transportation services becomes very competitive. A solution to the capacity dilemma is to work with 3PL service providers such as freight forwarders and brokers that have ongoing relationships with multiple carriers. The combined volume of the 3PL's customer base can be leveraged for consistent access to much needed capacity at competitive rates. Talent Availability: At a time when SCM is gaining stature as a strategic driver of success, many organizations face a critical supply chain talent void due to years of headcount reduction, training budget cuts, and the retirement of highly skilled individuals. One way to address the talent crisis is to hire a 3PL with strong and stable talent. Top 3PLs have the strategic foresight to invest in training, development, and retention programs that help them maintain a strong pipeline of leaders who can diagnose customer needs, develop effective solutions, and manage the implementation process. Omni-channel Agility: No longer are 3PLs merely managing deliveries to the back door of retail outlets. Today, they are supporting home delivery, manufacturer direct delivery, alternate site delivery, and variations of buy online and pickup in stores. Collectively, this makes for huge omni-channel transportation and logistics challenges that many companies are not equipped to handle with their existing processes, talent, and IT resources. Customers must work with 3PLs that can effectively handle a growing inventory base and e-commerce orders that vary in type, size, and delivery location. These 3PLs must offer flexible solutions for rapidly moving inventory through these networks to customer and managing returns from customers. Sustainability Expertise   The execution of supply chain processes has a significant impact on the environment - delivery processes require heavy use refined oil products, generate carbon emissions, and contribute to congestion. Transportation managers are under increased pressure to deploy delivery methods that have lower environmental impacts - without raising the cost or reducing the quality of service.  3PL users need to work with service providers that are committed to sustainable supply chain practices and have developed expertise over time. While many 3PLs have adopted TMS tools to help them minimize resource use through the optimization of routes and the reduction of empty miles, a much smaller group has invested in alternative fuel equipment and LEED-certified facilities.

Question 2

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

Accepted Answer

A)   Pool distributor
B)   Last mile delivery
C)   Household goods movement
D)   Dedicated contract carriage C

Question 3

Companies may smartly outsource all of the following except:

Accepted Answer

A)   Information technology
B)   Core activities
C)   Manufacturing
D)   Logistics B

Question 4

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

Accepted Answer

A)   Forwarder based
B)   Financial based
C)   Distribution based
D)   Transportation based

Question 5

While many 3PLs have expertise in some of the special service areas, leading 3PLs are pursuing two additional capabilities, these are:

Accepted Answer

The answer of While many 3PLs have expertise in some...

Question 6

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

Accepted Answer

A)   Forwarder based
B)   Financial based
C)   Distribution based
D)   Transportation based

Question 7

What is the primary role of an Air Freight Forwarder?

Accepted Answer

The answer of What is the primary role of an...

Question 8

According to the text book the definition of a 3PL is:

Accepted Answer

The answer of According to the text book the definition...

Question 9

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

Accepted Answer

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

Question 10

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.

Accepted Answer

A)   Strategic assessment
B)   Decision to form relationship
C)   Evaluation of alternatives
D)   Structuring of an operating model

Question 11

Shipments for over the road carriers that average 45,000 pounds require ____________.

Accepted Answer

A)   2 axle equipment
B)   5 axle tractor trailer combination
C)   single axle combination
D)   only a tractor trailer

Question 12

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

Accepted Answer

A)   North America
B)   Europe
C)   Asia-Pacific
D)   Latin America

Question 13

Two basic types of lease agreements for private trucking are:

Accepted Answer

A)   Full service and finance
B)   Low interest and high interest
C)   Cost and direct
D)   Working and renting

Question 14

When the market for transportation services becomes very competitive, ___________ becomes scare to companies.

Accepted Answer

A)   3PL usage
B)   technology
C)   transportation capacity
D)   metric tons

Question 15

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

Accepted Answer

A)   International expertise
B)   Sustainability knowledge
C)   Omni-channel agility
D)   Talent availability

Question 16

What type of service involves local transportation of containerized cargo?

Accepted Answer

A)   Merge in transit
B)   Surface freight forwarding
C)   Intermodal marketing
D)   Drayage

Question 17

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

Accepted Answer

A)   Dedicated contract carriage
B)   Household goods movement
C)   Merge in transit
D)   Drayage

Question 18

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

Accepted Answer

A)   $81 billion
B)   $91 billion
C)   $100 billion
D)   $116 billion

Question 19

As of 2013 the 3PL industry produced revenues of:

Accepted Answer

A)   $704 Billion
B)   $487 Billion
C)   $74 Trillion
D)   $998 Million

Question 20

Over the road carriers are usually paid on the basis of the ___________.

Accepted Answer

A)   weight of their equipment
B)   days on the road
C)   government rate tables
D)   mile driven

Exam 9: Third Party Logistics