Chapter 4

Many organizations have directed significant attention toward working more closely with supply chain partners, including not only customers and suppliers but also various types of logistics suppliers

2. A horizontal relationship refers to firms on the same level in the supply chain.

3. The range of relationships with 3PLs ranges from being a vendor to being a vertical supplier.

4. The first stage in the process model for forming and sustaining supply chain relationships involves the process by which a manufacturer becomes fully aware of its logistics and supply chain needs.

5. Drivers and facilitators are internal issues that an organization must address before seeking a 3PL.

6. Once a 3PL provider is chosen, it is not necessary for an organization to seek continuous improvements as the 3PL will handle that function.

Collaboration is usually defined as a “business practice that encourages individual
organizations to share information and resources for the benefit of all”.

A Third Party Logistics firm is defined as a company that owns trucks and warehouses so as to offer integrated services.

9. Outsourcing and contract logistics are terms sometimes used to describe third-party logistics.

10. A financial based 3PL is a firm that takes a financial interest in an organization in order to underwrite the outsourcing of that firm’s logistics.

11. The most frequently outsourced function is freight bill payment.

12. The “IT gap” refers to the difference between the internal IT capabilities of 3PL users and the IT expertise of the 3PL providers.

13. Many organizations are working more closely with
a. customers.
b. customers and suppliers.
c. third-party logistics firms.
d. customers, suppliers, and various types of logistics suppliers.

14. Whether the relationship may or may not be with a provider of logistics services, today’s supply chain relationships are most effective when collaboration occurs among the ____________ who are involved.
a. participants
b. third party logistics providers
c. customers
d. suppliers

15. Vertical collaboration refers to
a. collaboration among buyers and sellers in the supply chain.
b. collaboration among carriers and shippers.
c. collaboration that moves up the supply chain.
d. collaboration with competitors.

16. Horizontal collaboration refers to a relationship that is ___________ and/or ____________.
a. 3PLs to 3PLs and/or service provider to service provider
b. buyer to buyer and/or seller to seller
c. flat across the chain and/or involving partners equal in size
d. collaboration with horizontal and/or vertical competitors

17. Full collaboration is the dynamic combination of
a. buyers, sellers, retailers, and 3PLs.
b. buyers, sellers, retailers, 3PLs, and appropriate government agencies.
c. both vertical and horizontal collaboration.
d. buyers and sellers only.

18. A third-party logistics firm may be defined as
a. an outsource service.
b. a firm that owns trucks and warehouses.
c. a firm that owns trucks and warehouses and provides computer support.
d. an external supplier that performs or manages all or part of a company’s logistics functions.

19. The least-frequently used IT-based services by customers of 3PLs are:
a. transportation management (execution)
b. warehouse/distribution management
c. global trade management and transport sourcing
d. strategic and customer-related

20. While available evidence supports the fact that the president or CEO and the finance executive are often involved with the identification of the need for logistic services,
a. customers are demanding a change.
b. executives from other areas in the company are also aware of such needs but to a lesser degree.
c. a 4PL will suggest greater collaboration.
d. off shore sourcing will point to greater need.

21. Approximately two-thirds of 3PL customers think their providers supply
a. tactical or operational services.
b. strategic or integrative services.
c. trucking and warehouse services.
d. a firm that can supply a competency that is not core to the firm.