What is a direct effect of technological integration on supply chains?

The correct answer highlights that technological integration in supply chains leads to enhanced reporting capabilities and visibility. This improvement is vital as it allows for real-time access to data, which can significantly influence decision-making processes. With advanced technologies such as data analytics, IoT, and cloud computing, organizations can track inventory levels, monitor demand fluctuations, and assess supplier performance more effectively. This level of visibility not only improves operational efficiency but also facilitates better collaboration among stakeholders, ultimately leading to a more responsive and agile supply chain.

The other choices reflect potential misunderstandings of the benefits of technological integration. For instance, reduced investment in automation technologies would typically be counterintuitive, as businesses often invest more in automation to optimize their operations. Slower data transfer speeds contradict the expected outcomes of technological advancements, which are designed to enhance speed and efficiency. Increased isolation of different functions also negates the typical objective of integrating technology to create a more cohesive and interconnected supply chain environment.