Exam CSCP topic 1 question 458 discussion

Transitioning from direct consumer shipment to shipping through an intermediary typically results in higher warehousing costs. This is because the intermediary will need to store the products before they are shipped to the final customers, adding an extra layer of warehousing expenses.

B: Direct shipment means small consignments which leads to higher the transportation costs when using an intermediary it does not mean to reduce the transportation cost but it means consolidating the shipments or need a waiting area (warehousing) so it will increase the warehousing cost

Lower transportation costs.

Transitioning from direct consumer shipment to shipping through an intermediary can be expected to result in lower transportation costs. Direct-to-consumer shipment involves shipping individual orders directly to customers, which can be more expensive than shipping in bulk to an intermediary, such as a retailer or distributor, who then handles the final delivery to customers. By consolidating shipments to fewer locations, the company can take advantage of economies of scale and negotiate lower transportation rates.