Final answer:
True, one of the main advantages of effective supply chain management is the reduction in inventory on hand, which allows businesses to optimize inventory levels and have the right products available when needed.
Step-by-step explanation:
One of the primary benefits of implementing supply chain management is indeed a reduction in inventory on hand. By optimally managing the supply chain, businesses can reduce excess inventory, which ties up capital and can lead to additional costs. Advancements in technology and transportation, effective policies during emergencies, labor rights protection, and international cooperation contribute to efficient supply chain operations.
This enhancement in supply chain management allows for more streamlined inventory systems, improved forecasting of demand, and better coordination with suppliers. Consequently, businesses reduce the likelihood of overstocking or stockouts, optimising inventory levels and ensuring that they have the right products available at the right time.