Question

What is insourced warehousing? a. A practice that encourages you to work together with your supplier to improve demand forecasts b. Transferring the responsibility to manage your inventory to your supplier c. Relying on warehousing capabilities of third parties to better manage distribution d. Involving the supplier in your NPD efforts e. Suppliers establishing manufacturing facilities close by

Answer 1

Correct option is C.

Relying on warehousing capabilities of third parties to better manage distribution

Step-by-step explanation:

Insourcing of the warehouse is practical if you want the possibility to go to the warehouse and check inventory, process orders, adjust orders or change deliveries. This makes your delivery more flexible, which may increase customer satisfaction. By insourcing the warehouse, you can also offer your customer that he can pick up his order at the warehouse. In that way the customer gets more delivery options and is able to save shipping costs. An insourced warehouse can also be beneficial, if your product range is constantly changing, because then you do not have to coordinate the changes with an external 3PL player.