What is an expected outcome of efficient inventory management?

Efficient inventory management aims to optimize the balance between supply and demand, ensuring that the right amount of product is available at the right time. One of the most significant outcomes of effective inventory control is higher order fulfillment rates. This occurs because businesses can accurately track stock levels and anticipate when to reorder products, leading to an increased ability to meet customer demands promptly.

When inventory is managed efficiently, companies can reduce the chances of stockouts, ensuring that customers receive what they ordered without delay. This responsiveness not only satisfies customer needs but also enhances the overall customer experience, leading to improved loyalty and repeat business.

In contrast, the other options reflect issues that arise from poor inventory management practices. Increased storage costs and overstocking of goods can result from not effectively managing inventory, as excess stock leads to higher holding costs without guaranteeing sales. Additionally, reduced product quality can occur when items are held in storage for too long or when inventory becomes obsolete due to mismanagement, resulting in waste and lost sales. Therefore, the emphasis on achieving higher order fulfillment rates illustrates a key benefit of efficient inventory management.