What can result from a lack of data in implementing SRM?

The selection of "Challenges in making informed decisions" as the correct answer reflects a fundamental aspect of data-driven decision-making in Supplier Relationship Management (SRM). When implementing SRM, having comprehensive and accurate data is crucial for understanding supplier performance, capability, risks, and overall contribution to the supply chain.

Without sufficient data, organizations face significant difficulties in analyzing suppliers and their capabilities accurately. This lack of insight can lead to selecting inappropriate suppliers, mismanaging relationships, and ultimately missing out on opportunities for cost savings, efficiency improvements, or innovation. Data is vital for assessing supplier performance metrics, evaluating compliance, and ensuring alignment with the organization's strategic goals.

In contrast, improved supplier selection processes, increased decision-making effectiveness, and enhanced integration of supplier processes require robust data to guide those initiatives. These benefits are typically achievable when comprehensive data analyses support decision-making, leading to better outcomes in supplier relationships. Thus, the absence of data directly contributes to decision-making challenges, making it the most appropriate response.