What term is used to describe the outsourcing of logistics?

A) E-Logistics
B) Shipper Managed Inventory (SMI)
C) Hollow Logistics
D) Sub-Logistics
E) Third-Party Logistics

Third-Party Logistics

External companies hired to manage all or part of another company’s logistics functions, including transportation, warehousing, and distribution.

Outsourcing

The practice of hiring third parties to perform services or produce goods traditionally performed or made in-house, to reduce costs or improve efficiency.

Logistics

The process of planning, implementing, and controlling the efficient flow and storage of goods, services, and related information from point of origin to point of consumption.