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Question 290 - CSCP discussion

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The most cost-effective way to increase the velocity of goods in a supply chain is to:

A.
improve the way the supply chain handles goods that are not in motion.
Answers
A.
improve the way the supply chain handles goods that are not in motion.
B.
switch to a faster mode of transportation.
Answers
B.
switch to a faster mode of transportation.
C.
establish warehouses near major retail outlets.
Answers
C.
establish warehouses near major retail outlets.
D.
subcontract with multiple third-party logistics (3PL) providers who are located at strategic locations.
Answers
D.
subcontract with multiple third-party logistics (3PL) providers who are located at strategic locations.
Suggested answer: A

Explanation:

Increasing the velocity of goods in a supply chain focuses on reducing delays and inefficiencies in the movement of products. Handling goods that are not in motion (e.g., those in storage, waiting for transportation, or during processing) efficiently can significantly enhance the flow and reduce bottlenecks. Techniques such as better inventory management, streamlined processes, and reduced handling times contribute to this improvement. While switching to a faster mode of transportation or using multiple 3PL providers can also increase velocity, these options are typically more costly compared to optimizing existing processes. Establishing warehouses near retail outlets can help but is not always practical or cost-effective.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies.

https://www.supplychainquarterly.com

asked 16/09/2024
Tom Nice
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