CPP Inventory & Logistics Management Flashcards
6 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPP Inventory & Logistics Management flashcards as text
What is 'freight audit' in logistics management?
Answer: Reviewing carrier invoices for accuracy and compliance with contracted rates before approving payment
Freight audit is the process of verifying carrier invoices against contracted rates and shipment data to catch billing errors before payment is made.
What do 'Incoterms' govern in international trade?
Answer: The responsibilities, costs, and risk transfer points between buyers and sellers in international transactions
Incoterms are standardized international trade terms that define which party bears costs and risks at each stage of an international shipment.
What is a 'bill of lading' (BOL)?
Answer: A legal document between shipper and carrier that serves as a receipt, contract of carriage, and document of title
A bill of lading is issued by the carrier and serves three functions: receipt for the goods, evidence of the contract of carriage, and document of title.
What is 'vendor-managed inventory' (VMI)?
Answer: An arrangement where the supplier monitors and replenishes the buyer's inventory based on agreed minimum levels
In VMI, the supplier takes responsibility for monitoring stock levels and replenishing the buyer's inventory, reducing buyer administrative burden and improving availability.
What is the purpose of carrier performance management in logistics?
Answer: To track and evaluate carrier metrics such as on-time delivery and damage rates in order to drive continuous improvement
Carrier performance management involves systematically measuring key service metrics to evaluate reliability, identify gaps, and hold carriers accountable for continuous improvement.
What does 'last-mile delivery' refer to in logistics?
Answer: The final step of the delivery process from a fulfillment facility to the end customer's location
Last-mile delivery is the final segment of the supply chain where goods move from a distribution hub to the ultimate destination, often the most costly and complex portion of the journey.