8.Although technologically the full linking of theSCM systems of suppliers and buyers is feasible,many buyers are reluctant to do so. Why?
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8.Although technologically the full linking of theSCM systems of suppliers and buyers is feasible,many buyers are reluctant to do so. Why?
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- Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material?. Although technologically the full linking of the SCM systems of suppliers and buyers is feasible, many buyers are reluctant to do so. Why?
- 7.2 If suppliers were to be rated on the following basis, what would be the ranking of the two suppliers listed? Rating of Suppliers Ranking of Suppliers Factor Weight Supplier A Supplier B Supplier A Supplier B Function 7 9 Cost 5 9 6 Technical 4 5 7 Assistance Credit 1 7 TermsTraditionally, buyer-supplier relationships were considered as adversarial, arms-length transactions, where both parties are acting in their own self-interest. However, this relationship is moving towards a more collaborative approach. Explain why and how a traditionally adversarial relationship with suppliers changes when a firm makes a decision to move to a few suppliers?Organizations can have multiple layers of first- and second-tier suppliers. Explain the advantages that organizations gain by having multiple layers of suppliers. Describe any disadvantages that can be brought to organizations by having multiple layers of suppliers.
- Ethics When firms implement a single sourcing policyin their buying, other possible suppliers do not have anopportunity to compete for the business. Is this ethi·cal? What are the advantages to the company? Whatare the disadvantages?Ethics When firms implement a single sourcing policy in their buying, other possible suppliers do not have an opportunity to compete for the business. Is this ethi- cal? What are the advantages to the company? What are the disadvantages?AccraMall Ltd (AML) has decided to have a firm grip with suppliers and tiers of suppliers The Mall management has realized that the external source of the supply chain has been left out during decision making process. The recent procurement Audit confirmed the assertion of the consultant who mentioned a number of ways to deal with the external source, Explain any three (3) external procurement relations that exist with the suppliers upstream
- Explain what are the reasons why top management commitment is essential to the success of supplier management and development ?A business marketer (who is ‘out’ or potential supplier) is keen to supply cold-rolled (CR) steel coils to amajor passenger car manufacturer, who has been buying the same material from three other suppliers onregular basis for the past few years. As per the purchase policy, the car manufacturer cannot buy anymaterial from more than three suppliers. What should the business marketer do to supply CR steel coils tothe major passenger car manufacturer?Bargaining power of suppliers may not be high if Select one: a. alternative suppliers are only a few b. supplier sells a relatively small amount to the specific buyer c. switching cost is high O d. supplier has potential to integrate backward