Which aspect is NOT typically improved by effective supplier relationship management?

Prepare for UCF's MAR3203 Supply Chain and Operations Management Exam 4 with essential study materials. Review concepts with flashcards and multiple-choice questions, complete with explanations. Maximize your exam readiness today!

Effective supplier relationship management (SRM) focuses on fostering strong, collaborative ties with suppliers to enhance the overall supply chain's efficiency and performance. Key benefits of SRM include improvements in the performance of supply chain operations, cost reductions, and lead time reductions, all of which stem from closer cooperation, increased transparency, and the sharing of information with suppliers.

Improvements in supply chain performance arise from joint problem-solving, where suppliers and companies collaborate to streamline processes and innovate. Cost reductions can occur as suppliers might offer better pricing through long-term partnerships or improved efficiencies. Lead time reductions result from better communication and planning, allowing for faster response times and more reliable delivery schedules.

On the other hand, while managing supplier relationships effectively might lead to a reevaluation of the supply base and could consolidate the number of suppliers for efficiency, it does not inherently aim to increase or decrease the number of suppliers. In fact, many firms may choose to work with fewer suppliers to deepen relationships and leverage their efficiency. Therefore, the aspect that is not typically improved by effective supplier relationship management is the number of suppliers used, as SRM is more concerned with the quality and effectiveness of existing relationships rather than the quantity.

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