Certified in Logistics, Transportation and Distribution (CLTD) 2026 – 400 Free Practice Questions to Pass the Exam

The fulfillment channel that exemplifies traditional supply chain practices is the one where products move from the manufacturer to a distribution center (DC) and then to a retailer. This model is structured and hierarchical, aligning with the conventional practices of supply chain management.

In this channel, the process begins with the manufacturer producing goods, which are then sent to a distribution center. This center serves as an intermediary storage facility where inventory can be managed, consolidated, and prepared for distribution. From the distribution center, products are delivered to retailers, who then provide the merchandise to end customers. This structured distribution pathway allows for efficient inventory management, economies of scale in transportation, and the ability to meet retailers' demands by controlling stock levels.

Moreover, this approach emphasizes a well-defined logistics flow, utilizing established transportation routes and practices that have evolved over decades. It leverages warehousing and distribution strategies that have been foundational to supply chains, illustrating how inventory is managed in a methodical way to ensure availability at retail locations.

The other options present variations that deviate from traditional methods. Manufacturer storage with direct delivery involves shipping directly from the manufacturer to the customer, bypassing the DC altogether. Manufacturer storage with drop shipping eliminates the need for the manufacturer to hold large inventories by having products shipped directly