What does effectively applying technology in supply management lead to?

Effectively applying technology in supply management primarily leads to reduced costs. This happens because technology can streamline operations, automate tasks, and enhance communication throughout the supply chain. By utilizing advanced tools and systems, organizations can minimize labor costs, reduce errors, and optimize inventory management. This increased efficiency often results in lower operational costs and the ability to negotiate better deals with suppliers due to improved data insights.

For example, technologies such as e-procurement systems or inventory management software can help organizations track spending and inventory levels in real time, allowing for more informed decision-making. This facilitates better supplier relationships and cost savings over time. Additionally, improved forecasting and analytics help manage supply chain disruptions and ensure that resources are allocated effectively, contributing to overall cost reductions.

In contrast, the other options suggest negative outcomes. Increased manual processes, decreased efficiency, and more paperwork are generally associated with outdated or poorly executed technology use in supply management. When technology is applied effectively, those negative impacts are mitigated. Thus, the application of technology aimed at improving operations and reducing costs is a well-recognized benefit in the field of supply management.