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CIPS L6M10 Exam (page: 4)
CIPS Global Logistics Strategy
Updated on: 31-Mar-2026

Viewing Page 4 of 41
L6M10 PDF 197 Questions

What is the primary challenge addressed by a global logistics strategy?

  1. Navigating the world trade system effectively
  2. Managing and upgrading logistics and distribution channels
  3. Competing in the global market
  4. Maximizing profitability through cost-effective execution of orders

Answer(s): D

Explanation:

A global logistics strategy focuses on delivering products and services efficiently while maximizing profitability through cost-effective order execution. [P-3]



A company is looking to improve cost efficiency while remaining responsive to customer demands in its supply chain operations.
Which practice involves outsourcing core logistics capabilities to specialist providers like DHL and FedEx?

  1. Total external asset management
  2. Third-party logistics (3PL)
  3. Fourth-party logistics (4PL)
  4. Stock and inventory management

Answer(s): B

Explanation:

Third-party logistics (3PL) involves outsourcing logistics functions to specialized providers such as DHL and FedEx to improve efficiency and responsiveness. [P-38]



The quarterly Global Supply Chain Risk Report measures strategic logistical risks across industry sectors using four key risk metrics.
Which metric examines the impact of the exchange rate when transactions occur between the buying organization and supply partners who use different currencies?

  1. Global sourcing risk
  2. Supplier criticality
  3. Supplier financial risk
  4. Foreign exchange risk

Answer(s): D

Explanation:

Foreign exchange risk measures the impact of currency fluctuations when conducting transactions in different currencies, affecting supply chain costs. [P-63]



What does the consideration of "health and safety for the movement of hazardous material" and "security where a product is of high value and low weight" fall under in the selection of a suitable mode of transport?

  1. Operational factors
  2. Transport mode characteristics
  3. Cost and service requirements
  4. Consignment factors

Answer(s): D

Explanation:

Consignment factors include considerations such as safety, security, and handling requirements for different types of goods. [P-25]



An organization is seeking to reduce inventory supply in its supply chain while benefiting from economies of scale and batching. To achieve this goal, which of the following strategies should the organization consider implementing?

  1. Keeping long resupply lead times
  2. Implementing electronic data interchange (EDI)
  3. Increasing safety stock levels
  4. Offering frequent discounts to customers

Answer(s): B

Explanation:

Electronic data interchange (EDI) provides real-time data on customer demand, reducing artificial ordering fluctuations and improving inventory efficiency. [P-19]



Viewing Page 4 of 41



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