What is a possible consequence of ineffective supply chain management?

Ineffective supply chain management can lead to a variety of negative outcomes, with reduced customer loyalty being a significant consequence. When a supply chain operates inefficiently, it may struggle to meet customer demands in terms of quality, delivery times, and overall product availability. If customers frequently experience delays, errors, or poor service because of supply chain failures, their trust and satisfaction can diminish. As a result, customers may turn to competitors who are better able to deliver the products and services they desire.

Inconsistent quality and service can negatively affect a customer's perception of the brand, making them less likely to remain loyal. Over time, if customers feel their needs are not being met, they may actively seek alternatives, thereby harming the company's market position and profitability.

The other options present scenarios that generally result from effective supply chain management. Increased employee satisfaction and decreased production costs are often outcomes of streamlined operations and efficient processes. Similarly, an increase in market share typically indicates a strong competitive position, which is supported by effective supply chain practices.