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Question 345 - CSCP discussion

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A company is transitioning its fulfillment strategy from direct consumer shipment to shipping through an intermediary. Which of the following impacts can be expected?

A.
Higher transportation costs
Answers
A.
Higher transportation costs
B.
Higher warehousing costs
Answers
B.
Higher warehousing costs
C.
Lower transportation costs
Answers
C.
Lower transportation costs
D.
Lower warehousing costs
Answers
D.
Lower warehousing costs
Suggested answer: C

Explanation:

Transitioning from direct consumer shipment to shipping through an intermediary can lead to changes in both transportation and warehousing costs. The key expected impact is lower transportation costs due to the following reasons:

Consolidation of Shipments: Shipping through an intermediary allows for the consolidation of multiple small shipments into larger ones, which can reduce per-unit transportation costs.

Economies of Scale: Intermediaries often have better-negotiated rates with carriers due to higher shipping volumes.

Optimized Routes: Intermediaries can optimize shipping routes and schedules, further reducing transportation expenses.

'Logistics and Supply Chain Management' by Martin Christopher

Council of Supply Chain Management Professionals (CSCMP) resources

asked 16/09/2024
doaa elshazly
47 questions
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