Council of Supply Chain Management Professionals (CSCMP) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

How does big data contribute to supply chain efficiency?

By simplifying the decision-making process

By enabling insights through data analysis

Big data significantly enhances supply chain efficiency by enabling insights through data analysis. In today’s complex supply chain environments, vast amounts of data are generated from various sources, including sales forecasts, customer interactions, transportation patterns, and inventory levels. Analyzing this data allows companies to identify trends, discover inefficiencies, and make informed decisions based on real-time information.

For instance, companies can respond more rapidly to market demand fluctuations, optimize inventory levels to reduce carrying costs, and enhance forecasting accuracy. These insights help organizations to streamline operations, improve customer satisfaction, and ultimately drive profitability.

While the other options may include aspects that can exist in the supply chain context, they do not directly address the core benefit of big data applications in improving efficiency. Simplifying decision-making can be a result of the insights provided by data but is not the primary contribution. Increasing costs and limiting data access, on the other hand, would generally hinder efficiency rather than enhance it.

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By increasing the cost of information management

By limiting access to data for security reasons

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