What is the key feature of bottleneck goods in supply chain management?

What is the key feature of bottleneck goods in supply chain management?

• A. High strategic importance and high difficulty
• B. Low strategic importance and low supply chain difficulty
• C. Low strategic importance but high supply chain difficulty
• D. High strategic importance but low supply chain difficulty

Answer: (C)

Bottleneck goods are characterized by having low strategic importance while presenting significant challenges within the supply chain. This designation stems from the fact that these goods may not be critical to the overall strategic objectives of the business, yet there can be complications in sourcing or maintaining them due to factors such as limited availability or specialized providers. These challenges in procurement or production processes can lead to disruptions, making it essential for companies to effectively manage these goods to ensure that they do not hinder operational effectiveness. Consequently, while the goods themselves are not deemed crucial for strategic success, their supply chain difficulty highlights the need for proactive management to mitigate risks associated with their procurement and ensuring smooth operations.

Bottleneck goods are characterized by having low strategic importance while presenting significant challenges within the supply chain. This designation stems from the fact that these goods may not be critical to the overall strategic objectives of the business, yet there can be complications in sourcing or maintaining them due to factors such as limited availability or specialized providers.

These challenges in procurement or production processes can lead to disruptions, making it essential for companies to effectively manage these goods to ensure that they do not hinder operational effectiveness. Consequently, while the goods themselves are not deemed crucial for strategic success, their supply chain difficulty highlights the need for proactive management to mitigate risks associated with their procurement and ensuring smooth operations.