Question

A company ABC has contracted a third-party logistics company XYZ. Which one of the following functions is least likely to be provided by the third-party logistics company (XYZ) to ABC?
a. inventory control
b. customer service function (e.g., storing spare parts)
c. transportation of goods
d. warehouse management
e. production of components

Answer 1

Answer: Warehouse management

Explanation:

Since the company ABC contracted a third-party logistics company XYZ, some of the functions that can be provided by the third-party logistics company (XYZ) to ABC include:

• inventory control

• customer service function (e.g., storing spare parts)

• transportation of goods

• production of components

It should be noted that performing warehouse management is very unlikely. This simply means the oversight with regards to the operations in the warehouse such as receiving inventory, tracking inventory, managing shipping etc. This should be provided by ABC and not XYZ.