The primary reason for a firm to pursue strategic supply chain activities is to:

The primary reason for a firm to pursue strategic supply chain activities is to:

A. gain competitive advantage.

B. reduce total cost of ownership (TCO).

C. decrease inventory.

D. increase product life cycles.

View Answer

Answer: A

Explanation:

Context: Strategic supply chain activities are pursued to achieve long-term business objectives.

Options Breakdown:

A. Gain competitive advantage: Strategic activities enhance a firm’s market position through improved efficiency, customer service, and innovation.

B. Reduce total cost of ownership (TCO): While important, this is often a tactical goal rather than the primary strategic driver.

C. Decrease inventory: Inventory reduction is a tactical benefit but not the main strategic reason.

D. Increase product life cycles: Extending product life cycles can be a goal, but it is not the primary strategic driver.

Correct Answer Justification: The primary reason for engaging in strategic supply chain activities is to gain a competitive advantage by enhancing overall performance and customer satisfaction.

Reference: Strategic supply chain management literature Industry analyses on the benefits of strategic supply chain initiatives