Certified Supply Chain Professional (CSCP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Supply Chain Professional (CSCP) Exam with an interactive quiz that assesses your knowledge through flashcards and multiple-choice questions. Each question includes hints and detailed explanations to reinforce your learning and help you get ready for the test.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is a potential risk when using a 3PL provider?

Greater oversight on logistics strategy
Increased control of inventory management
Loss of control over logistics strategies
Enhanced employee motivation

The correct answer is: Loss of control over logistics strategies

The potential risk associated with using a third-party logistics (3PL) provider relates to the loss of control over logistics strategies. When a company partners with a 3PL, it delegates significant aspects of its logistics operations, which may result in less direct oversight and potential misalignment between the company's goals and the 3PL provider's approach. This can lead to challenges in maintaining the desired level of service, agility, and responsiveness to customer needs, as the 3PL may implement their own processes and policies that do not fully align with the company's strategic objectives. Utilizing a 3PL can streamline logistics and provide expertise, but it inherently comes with the drawback of reduced direct control, especially if the partnership is not carefully managed or if there is insufficient communication. This necessitates a thorough vetting process when selecting a 3PL and establishing clear expectations to mitigate any risks associated with this loss of control.