Certified Logistics Associate (CLA) Practice Test 2025 – All-in-One Guide for Exam Success!

Question: 1 / 400

What does the term '3PL' stand for in logistics?

Third-party logistics

The term '3PL' stands for Third-party logistics. In the logistics industry, this refers to the use of third-party businesses to outsource elements of a company's distribution and fulfillment services. The concept is essential for organizations looking to streamline operations, reduce costs, and leverage the expertise of specialized providers in warehousing, transportation, and logistics management.

Using a third-party logistics provider allows companies to focus on their core competencies while leaving the complexities of supply chain management to experts. This arrangement can enhance flexibility, scalability, and efficiency, making it a popular choice for businesses of all sizes.

In contrast, the other options do not accurately represent the widely accepted terminology in logistics. Two-party logistics might imply a simpler relationship but does not capture the comprehensive service offerings associated with 3PL. Three-point logistics and temporal logistics do not reflect established practices in the field and are not recognized terms in logistics discussions.

Get further explanation with Examzify DeepDiveBeta

Two-party logistics

Three-point logistics

Temporal logistics

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy