Which of the following best describes a characteristic of an effective supply chain?

An effective supply chain is characterized by efficiency in timing and cost management. This means that the supply chain is designed to minimize delays and reduce costs at every stage, from procurement to delivery. Efficient timing ensures that products are available when needed, which helps prevent stockouts and excess inventory. Effective cost management involves optimizing resources to reduce expenses while maintaining quality and service levels.

By focusing on both timing and cost, companies can improve their responsiveness to customer demands and enhance overall satisfaction, which is crucial for maintaining a competitive edge in the market. This characteristic promotes a more streamlined operation, where activities are coordinated effectively to maximize productivity and reduce waste.

In contrast, high storage costs, complexity in operations, and limited communication between partners would adversely impact a supply chain’s efficiency, leading to potential delays, increased expenses, and reduced collaboration among stakeholders.