Which factor commonly contributes to longer lead times in global supply chains?

Which factor commonly contributes to longer lead times in global supply chains?

• A. Cross-border customs and regulatory requirements
• B. Proximity of suppliers
• C. Local warehousing efficiency
• D. Automation in manufacturing

Answer: (B)

Geographic distance to suppliers primarily drives how long a replenishment takes. When suppliers are far away, goods must travel longer distances, pass through more transit legs, and often pass through customs and multiple handoffs, all of which add time to the overall lead time. If suppliers are close, shipments move quickly, reducing transit time and enabling faster replenishment, which shortens lead time. Other factors like customs delays can add time, but they’re not as directly tied to the distance issue, and elements such as warehousing efficiency or automation typically shorten lead times rather than lengthen them. So the proximity of suppliers directly explains why longer lead times occur in global networks.

Geographic distance to suppliers primarily drives how long a replenishment takes. When suppliers are far away, goods must travel longer distances, pass through more transit legs, and often pass through customs and multiple handoffs, all of which add time to the overall lead time. If suppliers are close, shipments move quickly, reducing transit time and enabling faster replenishment, which shortens lead time. Other factors like customs delays can add time, but they’re not as directly tied to the distance issue, and elements such as warehousing efficiency or automation typically shorten lead times rather than lengthen them. So the proximity of suppliers directly explains why longer lead times occur in global networks.