A company wants to establish a warehouse to serve a new market. Which of the following warehouse ownership arrangements will provide the best combination of low cost and high operational flexibility?
A company wants to establish a warehouse to serve a new market. Which of the following warehouse ownership arrangements will provide the best combination of low cost and high operational flexibility?
A contract warehouse allows the company to outsource its warehousing and distribution needs to a third-party logistics provider (3PL) under a contractual agreement. This arrangement provides flexibility in terms of scaling warehouse operations up or down as needed, depending on market demand fluctuations, and can often be more cost-effective than private ownership.
The correct answer is C
C looks correct.
A contract warehouse allows the company to outsource its warehousing and distribution needs to a third-party logistics provider (3PL) under a contractual agreement. This arrangement provides flexibility in terms of scaling warehouse operations up or down as needed, depending on market demand fluctuations.