Which of the following is considered an external driver of change in supply chain management?

Globalization is an essential external driver of change in supply chain management because it affects how businesses operate on a global scale. It influences various aspects, such as sourcing materials, production locations, and market access. As companies expand their operations internationally, they must adapt their supply chains to accommodate diverse regulations, customs, and consumer preferences around the world.

This external driver compels companies to innovate and optimize their supply chain practices to remain competitive, manage risks associated with international logistics, and meet global demand effectively. In contrast, adjusting safety stock levels, increasing inventory turnover, and cutting production costs are internal strategies or operational decisions that companies implement to improve efficiency but do not directly stem from external market changes.