Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2026 – Your All-in-One Resource to Complete Exam Success!

The three types of utility in supply chain management are form utility, place utility, and time utility.

Form utility refers to the value added to a product through its transformation into a finished state that is more useful to the consumer. This includes manufacturing processes where raw materials are turned into products that meet customer needs.

Place utility emphasizes the importance of having products available where customers need them. It involves strategically locating inventory and distribution centers to ensure accessibility.

Time utility is about making products available at the right time when customers want to purchase them. This can involve effective scheduling and inventory management to prevent stockouts or excess inventory.

Recognizing how these utilities contribute to customer satisfaction and operational efficiency is crucial in managing supply chains effectively. Each of these utilities plays a significant role in how goods are delivered to end consumers, ultimately influencing overall supply chain performance.