What term is used to describe the outsourcing of logistics operations?

The term that is used to describe the outsourcing of logistics operations is "Third-Party Logistics," commonly abbreviated as 3PL. This refers to the practice where a company hires a third-party organization to handle various logistics functions on its behalf. These functions may include transportation, warehousing, inventory management, and order fulfillment. Utilizing third-party logistics allows companies to focus on their core competencies while leveraging the expertise and resources of logistics providers to enhance efficiency and reduce costs.

Third-party logistics providers can offer specialized services and technologies that a company may not have in-house, which can lead to improved service levels and customer satisfaction. This arrangement helps businesses to scale their operations without needing to invest heavily in their own logistics infrastructure.

The other options, while related to logistics and supply chain management, do not specifically define the outsourcing aspect as clearly as the term "Third-Party Logistics" does. They encompass broader concepts or different approaches to management that do not exclusively pertain to outsourcing logistics operations.