What is a direct result of effective supplier relationship management?

Effective supplier relationship management (SRM) fosters a collaborative environment where both the buying organization and suppliers can work together more efficiently. This collaboration leads to various benefits, including optimized performance, which refers to improved supply chain processes and the overall ability to meet customer demands effectively.

When suppliers are engaged in a strong relationship, there is better communication, which can lead to innovation and the sharing of best practices. This can enhance product quality, reduce lead times, and improve responsiveness to market changes. The trust built through effective SRM can also lead to strategic partnerships that help both parties achieve their business goals.

The other options reflect opposite outcomes of what effective supplier relationship management aims to achieve. Increased costs, lower product quality, and reduced customer engagement result from poor supplier relationships, not from effective ones. Therefore, optimized performance and collaboration with suppliers stand out as the clear direct result of strong SRM practices.