CLEP Marketing

Answer: E - Iliad Manufacturing has shifted its product distribution department to an external company to control costs in what is termed outsourcing. Outsourcing in distribution occurs when the physical tasks of moving products is sourced out to a third-party company. Third-party firms that handle distribution for companies often have special expertise, equipment, warehousing, transportation, and information technology to handle these tasks better than the company. Companies use these firms to control costs, especially those associated with gaining expertise, inventory management, and purchasing space and equipment.