Certified Supply Chain Professional (CSCP) Practice Exam

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Prepare for the Certified Supply Chain Professional (CSCP) Exam with an interactive quiz that assesses your knowledge through flashcards and multiple-choice questions. Each question includes hints and detailed explanations to reinforce your learning and help you get ready for the test.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is a primary reason for offshoring?

Improving employee retention
Enhancing product quality
Cost cutting
Increasing local investments

The correct answer is: Cost cutting

Offshoring primarily aims to reduce costs, making cost-cutting the principal reason for this strategy. Organizations often relocate operations to countries with lower labor and production costs, which can significantly decrease overall expenses. This financial advantage allows companies to maintain competitive pricing, increase profit margins, and allocate resources more effectively. While improving employee retention, enhancing product quality, and increasing local investments are important considerations, they do not carry the same weight as cost reduction in the context of offshoring. For many companies, when deciding to offshore, the immediate objective is to leverage lower operational costs, which directly impacts the bottom line and can facilitate strategic investments in other areas of the business.