A company wants to improve its transportation strategy to focus on its core manufacturing competence and reduce costs. Which of the following options is most likely to enable the company to achieve its objectives?

Engaging a third-party logistics (3PL) provider allows a company to outsource its transportation and other logistics functions. This enables the company to focus its resources and management attention on its core competence, which is manufacturing. 3PLs are specialists in logistics and can often perform these functions more efficiently and at a lower cost due to their expertise, established networks, and economies of scale. This directly addresses the company's dual objectives of focusing on its core business and reducing transportation costs.

A. Implementing a TMS is an internal improvement. It requires capital investment and management focus, rather than offloading the function to focus on core competencies.
B. Leasing equipment changes the financing of assets but still requires the company to manage and operate its own transportation, which is not its core competence.
D. Redesigning the distribution network is a strategic project to optimize structure but does not, by itself, offload the transportation function to a specialist.

1. APICS CSCP Learning System, 2022, Module 2, Section B, Chapter 1: Logistics and Supply Chain Management. (Discusses the role of 3PLs in allowing firms to focus on core competencies).

2. Langley, C. J., & Capgemini Consulting. (2021). 2021 25th Annual Third-Party Logistics Study: The State of Logistics Outsourcing. (This annual report consistently highlights cost reduction and the ability to focus on core competencies as top reasons for outsourcing to 3PLs).

3. Hertz, S., & Alfredsson, M. (2003). Strategic development of third-party logistics providers. Industrial Marketing Management, 32(2), 139-149. https://doi.org/10.1016/S0019-8501(02)00228-6 (Explains how 3PLs enable client companies to concentrate on their core business activities).