Certified Supply Chain Professional (CSCP) Practice Exam

What is one method to increase supply chain visibility?

1. Limiting communication with suppliers

2. Utilizing advanced tracking technologies

3. Reducing the number of warehouses

4. Outsourcing to third-party logistics only

The correct answer is: Utilizing advanced tracking technologies

Increasing supply chain visibility is crucial for effective management and decision-making. Utilizing advanced tracking technologies is an effective method to achieve this. These technologies can include GPS tracking, RFID (Radio Frequency Identification), IoT (Internet of Things) devices, and cloud-based software solutions. By implementing these advanced systems, organizations can monitor the movement of goods in real-time, gather data on inventory levels, and track order statuses throughout the supply chain. This level of visibility allows companies to respond quickly to disruptions, optimize inventory management, and improve overall operational efficiency. Furthermore, it enables better communication and collaboration with suppliers and logistics partners, as all parties can access real-time information, leading to improved forecasting and planning. In contrast, limiting communication with suppliers would hinder visibility, while reducing warehouses could lead to delays and inefficiencies. Outsourcing to third-party logistics may enhance capabilities but does not inherently increase visibility unless combined with advanced tracking methods. Therefore, using advanced tracking technologies is a proven approach to enhancing supply chain visibility.