APICS Certified Supply Chain Professional (CSCP) — Question 427

A large retailer would like to reduce inventory investment in its distribution network. Which of the following actions is most likely to produce the desired result in the shortest time?

Answer options

• A. Implementing break-bulk
• B. Forming strategic alliances
• C. Implementing cross-docking
• D. Utilizing third-party logistics (3PL) providers

Correct answer: C

Explanation

Implementing cross-docking allows for the direct transfer of products from inbound to outbound transportation without storage, which minimizes inventory holding times and costs. The other options, while beneficial for supply chain management, typically take longer to establish and may not lead to immediate inventory reduction.