A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing, is called:

a. outsourcing.
b. mediation.
c. intermediary distribution.
d. benchmarking.

ANSWER: a
A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing, is called outsourcing. The outsourcing of a business process from one country to another is for the purpose of gaining economic advantage.

Business

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