Which of the following is a key benefit of implementing an SRM strategy?

Implementing a Supplier Relationship Management (SRM) strategy significantly enhances communication and collaboration with suppliers, which is a fundamental benefit of this approach. By fostering strong relationships, organizations can improve information flow, align objectives, and create a more collaborative environment. This leads to greater trust and transparency, enabling businesses to better understand supplier capabilities, manage risks, and achieve innovation together. Improved collaboration can result in better negotiation outcomes, improved quality of goods and services, and overall performance enhancements in the supply chain.

In contrast, increased product variety, higher inventory levels, and reduced marketing costs do not directly stem from the core purpose of an SRM strategy. While these aspects may have their advantages in broader business strategies, they do not specifically highlight the advantages provided by an effective SRM approach, which centers around optimizing supplier interactions and relationships.