Which of the following is NOT a benefit of an organized supply management system?

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Prepare for the ASU SCM355 Supply Management Exam 1 with practice quizzes. Test your knowledge with flashcards and multiple choice questions, complete with detailed explanations. Master your exam!

An organized supply management system is designed to optimize various aspects of the supply chain, leading to numerous benefits. Lower operational costs result from efficient sourcing, improved negotiation with suppliers, and reduced waste. Improved customer satisfaction is achieved through timely deliveries and higher product quality, which are facilitated by a well-structured supply management strategy. Additionally, streamlined processes lead to quicker decision-making, better coordination among departments, and overall efficiency in operations.

In contrast, increased inventory levels do not align with the primary goals of an organized supply management system. High inventory levels can result from poor management practices, leading to increased holding costs and potential obsolescence of stock. The focus of an effective supply management system is to maintain optimal inventory levels that balance supply and demand, minimizing excess inventory while ensuring product availability. Thus, increased inventory levels would typically be seen as a disadvantage in the context of supply management efficiency.

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