Some Firms Are Reluctant to Use Third-Party Logistics Firms Because

question 61

True/False

Some firms are reluctant to use third-party logistics firms because they wish to maintain direct contact with customers and retain control over the logistics process.

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Definitions:

Average Sales Period

The average amount of time it takes for a company to sell its inventory, which can reflect its inventory management efficiency.

Liquidity

The ability of an entity to quickly convert its assets into cash or to pay off its current liabilities.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects money owed from its customers over a period.

Average Collection Period

The average amount of time that it takes for a business to receive payments owed by its clients in terms of receivables.