Certified Supply Chain Professional (CSCP) Practice Exam

Do complex supply chains generally require more resources to manage?

1. No, they are easier to control

2. Yes, they take more time and money to monitor

3. Only if they are global

4. No, they should be simplified

The correct answer is: Yes, they take more time and money to monitor

Complex supply chains generally require more resources to manage because they involve multiple interconnected processes, stakeholders, and logistics channels that need to be coordinated effectively. These complexities can arise from various factors such as the number of suppliers, distribution centers, and end customers, as well as the geographical spread of operations. Managing a complex supply chain often involves the integration of sophisticated technologies, extensive data analysis, and detailed planning to ensure efficiency and responsiveness. This means investing both time and money in monitoring the flow of goods, managing relationships, and implementing risk management strategies to handle uncertainties. In contrast, simpler supply chains may not require as extensive resources because their operations can be streamlined without the layers of complexity that typically necessitate a more resource-intensive approach. Thus, dealing with complexity in supply chains inherently increases the demand on resources such as personnel, technology, and financial investment.