Certified Supply Chain Professional (CSCP) Practice Exam

What is a primary benefit of increased visibility in the supply chain?

1. Enhanced decision-making capabilities

2. Increased inventory levels

3. Reduction of transportation costs

4. Faster product development cycles

The correct answer is: Enhanced decision-making capabilities

Increased visibility in the supply chain primarily enhances decision-making capabilities. This visibility means that data is accessible, timely, and accurate, allowing organizations to monitor their operations closely. With a clear view of inventory levels, order statuses, and supplier performance, decision-makers can identify potential issues before they escalate, optimize resource allocation, and respond quickly to changes in demand or supply. This proactive approach fosters more informed strategic planning and operational adjustments, leading to improved efficiency and risk management. While higher visibility might also contribute indirectly to aspects such as optimizing inventory levels, reducing transportation costs, or accelerating product development cycles, these outcomes are often secondary or dependent on stronger decision-making processes. Effective decisions driven by comprehensive supply chain visibility are foundational for realizing those additional benefits.