Certified in Logistics, Transportation and Distribution (CLTD) Practice Test

Processing weight-losing products near the source of supply is strategically efficient because these types of products tend to decrease in weight or volume during the processing stages. This could include raw materials like coal or ore, where the extraction process results in reduced overall weight. By processing these products close to their source, companies can minimize transportation costs associated with heavier, less refined materials and also decrease the environmental impact of hauling large quantities of unprocessed goods. Additionally, keeping these operations near the supply source allows for better control of the production process, leading to optimized logistics and faster turnaround times. Perishable items, high-value products, and weight-gaining products are typically processed differently to maximize shelf life, economic returns, and logistical efficiency.