What is a logistics service provider (LSP)?

• A. An internal department responsible for sourcing.
• B. A government agency regulating cross-border shipments.
• C. A third-party or fourth-party company that manages transportation, warehousing, and distribution.
• D. A customer who buys finished products.

Answer: (C)

A logistics service provider is an external firm that handles the logistics tasks for another company, taking care of moving goods, storing them, and getting them to customers. They can manage transportation, warehousing, and distribution, and may coordinate multiple steps in the supply chain. This differs from an in-house department within the same company, a government agency that regulates shipments, or a customer who buys finished products. LSPs (often called 3PL or 4PL) provide the specialized network, technology, and expertise to make logistics more efficient and scalable.