Which type of firm would be most likely to use a third-party logistics service?

• A. A firm that wants to outsource its transportation and warehousing operations
• B. A firm that only operates in local markets and does not require shipping
• C. A firm that specializes in providing logistics services to others
• D. A firm that produces all of its goods and services in-house

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the role of third-party logistics (3PL) services. These services specialize in managing transportation, warehousing, and distribution for other firms, allowing those firms to outsource these operations rather than handling them internally.
2. Step 2: Analyze the characteristics of each firm type given in the problem. Identify which firm would benefit from outsourcing logistics rather than performing it themselves or not needing logistics at all.
3. Step 3: Recognize that a firm that wants to outsource its transportation and warehousing operations would most likely use a third-party logistics service, as this aligns directly with the purpose of 3PL providers.
4. Step 4: Exclude firms that do not require shipping (such as those operating only in local markets without transportation needs) or those that produce all goods and services in-house (since they handle logistics internally). Also exclude firms that specialize in logistics themselves, as they provide rather than use these services.
5. Step 5: Conclude that the firm most likely to use a third-party logistics service is the one seeking to outsource its transportation and warehousing operations.