Which of the following is not a benefit of effective SRM practices?

The assertion that increased operational costs is not a benefit of effective Supply Relationship Management (SRM) practices is correct. When SRM is properly implemented, it typically leads to cost savings and efficiency improvements rather than increased expenses. Effective SRM focuses on building strong relationships with suppliers, which often results in better communication, collaboration, and innovation. These positive relationships can lead to improved processes that reduce costs and drive better value in the supply chain.

In contrast, enhanced supplier relationships, improving market responsiveness, and increased financial performance are all direct benefits of effective SRM. Strong supplier relationships foster collaboration, leading to joint problem-solving and innovation. Additionally, by effectively managing supplier interactions, organizations can respond quickly to market changes and demands, thereby enhancing their overall market agility. Lastly, financial performance can be positively impacted through cost reductions, improved service levels, and increased revenue generation driven by efficient supplier partnerships. Thus, the only option that does not align with the benefits of effective SRM practices is the increase in operational costs.