Final answer:
The statement that outsourcing involves a supply chain function being performed by a third party is true. Outsourcing allows companies to contract external organizations to complete tasks previously handled internally, often leading to operations being carried out in different countries to reduce costs.
Step-by-step explanation:
The statement, "Outsourcing results in a supply chain function being performed by a third party," is true. Outsourcing is the practice of contracting with an outside party to perform services or create goods that were traditionally performed in-house by the company's own employees. Over time, companies have outsourced various functions such as manufacturing, customer service, and information technology to specialized firms, often located in different countries, to lower costs and focus on their core competencies. This shift is part of a larger trend where higher costs in developed countries have led businesses to seek out lower-cost alternatives overseas.
Outsourcing differs from offshoring, although the two can be related. Offshoring involves moving some of the company's operations to another country. While outsourcing can result in offshoring if the third-party providers are located in another country, it does not necessarily imply that the operations are moving abroad; third-party providers can also be domestic.