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The world's largest retailer, Wal-Mart, owns and manages its own fleet of trucks. The company has often received praise for its distribution capabilities. The practice, however, seems to represent a stark contrast to the practice of outsourcing not only shipping, but other logistics operations to third-party logistics providers. Discuss the advantages and disadvantages of these different policies. Also, under what conditions would it make sense for a firm to own and manage its own trucking operation?

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