APICS Certified Supply Chain Professional (CSCP) — Question 210

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

Answer options

• A. Higher transportation costs
• B. Higher warehousing costs
• C. Lower transportation costs
• D. Lower warehousing costs

Correct answer: C

Explanation

The correct answer is C, as utilizing an intermediary can streamline shipping processes, often leading to lower overall transportation costs through optimized routes and bulk shipping arrangements. Options A and B are incorrect because they suggest increased costs, which contradicts the efficiencies gained by using an intermediary. Option D is also incorrect as it implies reduced warehousing costs, which may not necessarily apply in this scenario.