Many retailers have recently tried to reduce excess inventory by relying on smaller, more frequent shipments from suppliers. Advocates of this approach argue that it allows stores to respond more quickly to local demand, especially in categories such as apparel, where unsold items lose value rapidly. Some purchasing managers, however, contend that frequent shipments merely shift costs from warehouses to transportation budgets and create more opportunities for delivery delays.

A study by the Northbridge Retail Institute examined 42 mid-sized specialty chains that adopted frequent-shipment programs between 2021 and 2024. During the first year after adoption, average end-of-season markdowns fell from 18 percent of sales to 13 percent, while average transportation costs rose by 4 percent. The study also found that chains using regional distribution hubs gained more from the change than chains relying on direct deliveries from distant suppliers. In interviews, store managers reported that the programs were most useful when sales data were updated daily rather than weekly.

These findings do not show that frequent shipments are universally preferable to conventional inventory systems. They suggest instead that the approach can improve profitability when the savings from fewer markdowns exceed the added logistical costs. For retailers with highly predictable demand or unusually expensive transportation routes, larger scheduled deliveries may remain the more sensible option.

RCReading ComprehensionB1

According to the passage, what did the Northbridge Retail Institute study find about average end-of-season markdowns during the first year after retailers adopted frequent-shipment programs?

This v1 loop uses an imported draft-bank subset and server-side answer checks. CAT behavior and precise score prediction are intentionally not part of this MVP.

RCReading ComprehensionB1

According to the passage, what did the Northbridge Retail Institute study find about average end-of-season markdowns during the first year after retailers adopted frequent-shipment programs?

This v1 loop uses an imported draft-bank subset and server-side answer checks. CAT behavior and precise score prediction are intentionally not part of this MVP.

All-type practice loop

All-type practice loop