Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following best describes the global reach feature of online supply chains?

1. Expanding customer base locally

2. Eliminating distance and time-of-day constraints

3. Ensuring product availability in local stores

4. Requiring in-person negotiations for sales

The correct answer is: Eliminating distance and time-of-day constraints

The global reach feature of online supply chains is best described by eliminating distance and time-of-day constraints. This characteristic allows businesses to operate in a borderless environment, where geographical limitations no longer restrict transactions or interactions. Online platforms enable companies to connect with customers and suppliers around the world at any time, facilitating instant communication and transactions without the delays typically associated with traditional supply chain methods. This aspect of online supply chains not only broadens the potential market for businesses—making it easier to reach international customers—but also allows for 24/7 operations, thereby increasing the agility and responsiveness of supply chain processes. The ability to engage in commerce and manage supply chains across different time zones and locations adds significant value to global operations, showcasing the transformative power of digital technology in modern supply chain management. In contrast, expanding customer base locally focuses on regional aspects and does not capture the extensive, worldwide capabilities of online supply chains. Ensuring product availability in local stores pertains more to traditional, localized supply chain management issues rather than the broader reach enabled by online channels. Lastly, requiring in-person negotiations for sales fundamentally contradicts the essence of online supply chains, which thrive on remote transactions and digital interactions rather than physical meetings.