What do Supply Chain interventions aim to achieve in terms of cost?

Prepare for the CIPS Defining Business Need (L4M2) Test with multiple choice questions and insightful explanations. Enhance your understanding and ensure success!

Supply chain interventions are strategic actions designed to improve efficiency, reduce waste, and ultimately lead to cost savings within the supply chain. Gaining expertise or scale for cost reductions is a fundamental objective of these interventions. This approach allows organizations to leverage bulk purchasing, specialized operations, or improved technology, which can lead to lower per unit costs as well as enhanced productivity. By optimizing various components of the supply chain, businesses aim to not only reduce costs but also achieve better value delivery, thus aligning with the overall goals of supply chain management.

In contrast, the other options do not directly align with the primary goal of cost reduction through strategic supply chain interventions. While a reduction in distribution time can lead to cost benefits, it is not the primary aim. Increasing overall costs runs counter to the objective of supply chain management, which seeks to minimize expenses wherever possible. Lastly, while eliminating intermediary suppliers may be part of some strategies, it does not universally apply and is not inherently part of the goal for all supply chain interventions.

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