10 Questions
What is a characteristic of asset-based providers in terms of customer requirements?
They use their own tangible equipment and facilities
What type of providers are companies that own truck fleets and ocean vessels?
Asset-based providers
What is a key difference between asset-based providers and non-asset based providers?
Resource utilization
What do asset-based providers typically have in their labor force?
Their own labor force
What is a resource that asset-based providers may own?
Technology systems
What is a characteristic of asset-based providers in terms of management?
They have a management team to oversee day-to-day operations
What type of providers are companies that leverage the resources of other companies?
Non-asset based providers
What is a difference between asset-based providers and ocean liners in terms of service offerings?
Asset-based providers have a broader range of service offerings
What do asset-based providers use to perform customers' work?
Their own labor force
What is an example of an asset that an asset-based provider may own?
All of the above
Study Notes
Types of 3PL Providers
- Asset-based providers own resources such as truck fleets, ocean vessels, aircraft, terminals, and warehouses, which enable them to provide direct and immediate solutions.
- Examples of asset-based providers include UPS, J.B.Hunt, Exel, Ryder, and FedEx, which have their own labor force and management team to oversee day-to-day operations.
- Asset-based providers have readily available capacity, permanent employees, and direct control of freight, which attracts customers who prefer single-point accountability.
- However, asset-based providers may have bias towards using their internal resources, which may not always generate the most flexible or cost-efficient solutions.
Non-Asset Based Providers
- Non-asset based providers contract with other firms to provide transportation and logistics services, acting as service integrators.
- Examples of non-asset based providers include C.H.Robinson, Kuehne þ Nagel, CEVA Logistics, and XPO Logistics, which offer expertise in negotiating contracts and achieving the best combination of price and service.
- Non-asset based providers may also provide strategic planning, technology services, and international freight forwarding, customs brokerage, and related activities.
- Customers view non-asset based providers as more flexible than asset-based providers.
Characteristics of 3PL Providers
- 3PL providers differ in terms of service offerings, asset intensity, and geographic diversity.
- Asset-intensive providers have more limited service offerings and geographic diversity, while less asset-intensive providers offer a broader range of services and are more geographically diverse.
- Competitive threats faced by 3PL providers include factors such as asset utilization, labor costs, and regulatory changes.
This quiz focuses on the characteristics and capabilities of asset-based providers in third-party logistics, including their internal resources and infrastructure.
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