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Short Answer ( 5 points each ) You have been asked to participate with a negotiating team to negotiate with a 3 PL to operate

Short Answer (5 points each)
You have been asked to participate with a negotiating team to negotiate with a 3PL to operate your
company's new distribution center. The 3PL will provide labor and will process all orders that are
directed to the facility. The 3PL has been selected for the contract due to their expertise in direct-to-
consumer (online) order fulfillment.
a. Why do you think it may be beneficial to your company to have a 3PL operate this
distribution center?
b. Why might it be detrimental to your company to have a 3PL operate this distribution
center?
c. What might be a technology-based reason to contract the 3PL?
d. List and explain 3 key performance indicators (KPI's) that might be appropriate for this
supply chain relationship?
e. List and explain 3 ways in which you would hope your company and the 3PL might be
able to co-create value.
f. The DC processes consumer products. Realizing consumer products are highly seasonal
and also realizing full-time employees are very expensive, list and explain two reasons
your company might also contract a temporary employment service in addition to the
3PL?(Your answer must reflect ethical employment practice).
g. Is the relationship with the 3PL strategic or transactional? Briefly explain.
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