Certified Supply Chain Professional (CSCP) Practice Exam

What is an example of design to minimize transport and storage costs?

1. Products in standard boxes

2. Customized packaging solutions

3. Multiple sizes for varying orders

4. Individual item packaging

The correct answer is: Products in standard boxes

Selecting products in standard boxes is an effective approach to minimize transport and storage costs because it promotes efficiency and uniformity in the supply chain. Standardized packaging enables optimized use of space, both in transport vehicles and storage facilities, which can lead to more effective load management and reduced wasted space. By using the same packaging dimensions across a range of products, companies can stack items more easily, maximizing the cargo capacity of transport vehicles and the efficiency of storage systems. Additionally, standard boxes simplify inventory management, as handling and processing become more predictable and less complex. This can lead to lower handling costs and improved order fulfillment times, further contributing to cost reductions in both transport and storage. In comparison, customized packaging solutions, while potentially beneficial in some contexts, can lead to inefficiencies and higher costs due to the need for varying materials and sizes, ultimately complicating logistics. Offering multiple sizes for varying orders can create challenges in inventory management, as diverse packaging requirements can complicate storage and increase handling costs. Individual item packaging often adds unnecessary expense, especially when bulk or standardized options could be employed, thus increasing both transport volume and storage requirements.