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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:
Correct Answer: B
* 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. References: * Logistics and supply chain management literature * Definitions and roles of 3PLs in industry standards