Question
Why would firms usually outsource the logistics process to another partner? It may be expensive for firms to deliver the products firms aim to have environmentally sustainable operations stike is a common pheonemon in logistic The firms have the comparative advantage over a logistic partner
Answer
4.3
(126 Votes)
Gareth
Elite · Tutor for 8 years
Answer
A. It may be expensive for firms to deliver the products. B. Firms aim to have environmentally sustainable operations. C. Strike is a common phenomenon in logistics.
Explanation
Firms usually outsource the logistics process to another partner to enhance operational efficiency and reduce expenses. If a firm lacks specialized resources, it may be costly for them to deliver products themselves. Logistics involves numerous tasks, borrows on diverse skill sets, and requires extensive infrastructure. Hence, outsourcing can be a strategic move. Sometimes, firms aim to operate with sustainability mandates which specialized logistic enterprises are often designed to meet. Furthermore, strikes might be common in this domain and can disrupt the functioning of a firm significantly. Outsourcing helps firms not directly bear this impact. Although a firm might have comparative advantages in certain tasks, this doesn't necessarily include logistics. Concentrating on leveraging particular strengths can free them up to create a unique, competitively superior operation in their core areas, delegating other non-core processes like logistics.