Certified Supply Chain Professional (CSCP) Practice Exam

What impact can disruptive technology have on supply chain strategy?

1. It may require adopting new technologies

2. It eliminates the need for inventory

3. It makes traditional methods obsolete

4. It allows for lower pricing strategies

The correct answer is: It makes traditional methods obsolete

Disruptive technology significantly influences supply chain strategy by challenging established processes, systems, and technologies. When a new technology emerges that alters the way business is done, it often makes traditional methods less effective or entirely obsolete. This shift can compel organizations to rethink their operational strategies, leading them to innovate or adopt completely new approaches to stay competitive. For instance, automation and data analytics can redefine supply chain efficiency, making older inventory management and logistics practices less relevant. As a result, companies may need to reevaluate their entire supply chain frameworks to incorporate these advanced technologies, fostering agility and responsiveness to market demands. While adopting new technologies and evolving methods can be crucial responses to disruptive technology, it's their potential to render existing practices outdated that underscores the fundamental shift influencing supply chain strategies.