Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

A key feature of the manufacturer storage with drop ship fulfillment channel is that customers receive goods directly from the manufacturer. This model allows the manufacturer to fulfill orders directly to consumers without the need for intermediary storage or handling through retail locations. By performing drop shipping, the manufacturer can streamline logistics and reduce the need for inventory investment, facilitating faster delivery times and meeting customer demand more efficiently. This method is particularly advantageous for businesses that want to offer a wide range of products without the associated costs and complexities of maintaining significant inventory at retail points.

In contrast, the other options reflect different distribution models. Delivering products to a retail location would imply a more traditional retail distribution approach where inventory is stocked at a physical store. Ideal bulk shipments would refer to scenarios that benefit from economies of scale and are often managed through multiple distribution centers or warehouses. Utilizing multiple layers of intermediaries describes a more complex supply chain setup that typically involves wholesalers or distributors, which contrasts with the direct-to-consumer nature of the drop ship model.