Certified Logistics Associate (CLA) Practice Test 2025 - Free CLA Practice Questions and Study Aid.

Proximity to suppliers is crucial in determining the location of a distribution center because being close to suppliers can significantly reduce transportation costs, lead times, and improve the overall efficiency of the supply chain. When a distribution center is geographically near its suppliers, it allows for quicker replenishment of inventory, facilitates better communication and collaboration, and minimizes the risk of delays caused by long-distance shipping. This strategic location can enhance the ability to respond to changes in demand and maintain optimal stock levels, which is essential for meeting customer expectations.

In evaluating the other options, employee satisfaction, while important for overall operations, does not directly impact the logistical effectiveness or cost efficiency of a distribution center’s location. The history of transportation costs is relevant but more of an overall consideration rather than a critical determining factor when choosing a site. External funding opportunities, though they can be beneficial for planning and investment, do not inherently relate to the logistical aspects of proximity to suppliers that influence operational efficiency.