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What are the two most common ways to organize a supply chain organization?

Purchasing and logistics

The most common ways to organize a supply chain organization are through purchasing and logistics. Purchasing focuses on acquiring the necessary materials and resources that a company needs for production and operations. It involves the selection of suppliers, negotiation of contracts, and procurement processes to ensure that the organization has the required inputs in a timely and cost-effective manner.

Logistics, on the other hand, deals with the management of the flow of goods and services from the point of origin to the point of consumption. This includes transportation management, warehousing, inventory control, and distribution strategies. By efficiently coordinating these two functions, organizations can optimize their supply chain activities, enhance customer satisfaction, and reduce costs.

The other options do not encompass the core functions typically associated with the most effective supply chain management. While marketing, sales, operations, distribution, and procurement are all important aspects of business, they do not represent the primary organizational structure specifically related to supply chain management. Therefore, purchasing and logistics are widely recognized as the foundational pillars of effective supply chain organization.

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Marketing and logistics

Sales and operations

Distribution and procurement

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