Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following refers to the costs associated with increased material handling in e-business?

1. Costs of outsourcing logistics

2. Costs of returned goods

3. Costs incurred by customer handling

4. Costs of website maintenance

The correct answer is: Costs incurred by customer handling

The focus of this question is on the specific costs associated with increased material handling in the context of e-business. The correct answer highlights the costs incurred by customer handling, which encompass all expenses related to how products are managed once they are ordered. In an e-business environment, customer handling is crucial because it involves various aspects of the logistics process, including receiving orders, picking items, packing, and shipping, as well as responding to customer inquiries and handling any issues related to their orders. Increased material handling may lead to higher labor costs, additional packaging costs, and the need for more equipment to move products efficiently. All of these factors contribute to the overall costs associated with the handling of products purchased online. In contrast, the other options address issues that are relevant to logistics but do not specifically focus on the costs incurred due to increased material handling. For instance, outsourcing logistics would involve costs related to third-party services, while costs of returned goods pertain to the reverse logistics process after a purchase. Lastly, costs of website maintenance are related to the operational requirements of running an e-commerce platform, rather than the hands-on handling of physical products. Thus, the focus on customer handling aligns best with the question about material handling costs in e-business.