Question

What is the result of the efficiencies created from fedex's use of third party logistics (3pl)?

Answer 1

The correct answer is It has allowed customers to increase its revenues.

FedEx –one of the largest cargo and logistics companies in the world- hires third-party logistics or “3PL” to reduce other companies called intermediaries. With fewer intermediaries FedEx is able to have better management operations and be more efficient, reducing expenses.

The money FedEx saves in expenses is a benefit for its clients. Clientss can get better prices, for the benefiting of its budget and this way, allowing customers to increase its revenues.

Answer 2

It has increased customer revenues
This is because Fedex reduces intermediaries as it uses third party logistics knowns as 3pl it. This has resulted into more efficient operations which passes on to customers, making these customers to gain more.