Certified Production & Operations Manager (POM) Practice Exam

What is one of the primary benefits of a global supply chain?

1. Higher product prices

2. Access to a wider range of materials and expertise

3. Reduced market competition

4. Decreased delivery times

The correct answer is: Access to a wider range of materials and expertise

Access to a wider range of materials and expertise stands out as a primary benefit of a global supply chain because it enables businesses to source raw materials, components, and specialized skills from various parts of the world. This broader access allows companies to enhance their product offerings and innovate effectively by tapping into global markets, where different regions might excel in certain types of production or possess natural resources that are scarce elsewhere. For example, a technology company might procure components from countries known for advanced manufacturing technologies while sourcing raw materials like rare earth metals from other locations where they are more abundant. Additionally, engaging with a diverse pool of professionals can lead to better problem-solving capabilities and innovation, as different experiences and perspectives come into play. The other options do not align with the primary benefits of a global supply chain. Higher product prices may result from tariffs and transportation costs associated with global sourcing. Reduced market competition is not a benefit of a global supply chain; in fact, it often increases competition as businesses can enter new markets. Decreased delivery times can be challenging due to the complexities of international shipping, making it less of a guaranteed advantage of a global supply chain.