BTEC Business Level 3 Practice Test 2025 - Free Practice Questions and Study Guide

The purpose of supply chain management is to effectively oversee and coordinate all activities involved in sourcing, procurement, conversion, and logistics. This includes the management of the flow of goods and services from the initial supplier to the final customer, ensuring that products are delivered in a timely manner and meet quality standards. By managing these processes, organizations can improve efficiency, reduce costs, and ultimately enhance customer satisfaction.

The key functions of supply chain management include managing supplier relationships, optimizing inventory levels, and improving the overall operational efficiency of the organization. This strategic approach enables businesses to respond effectively to market demands and changes while maintaining a competitive edge in the marketplace.

The other options, while important to different business areas, do not encapsulate the comprehensive scope and focus of supply chain management. Developing marketing strategies and assessing market competition are related to marketing management, while managing financial forecasts and budgets pertains to financial management.