Analyse which type of supplier relationship the South African organisation should engage with its Chinese supplier.Identify the type of supplier relationship and justify your choice with the support of theory and application to the scenario and practical case study provided. Show knowledge through application not just showing theory. As Covid-19 threatens to steal Christmas again with the emergence of the Omicron variant, thosecelebrating should also expect higher prices and fewer choices due to the global supply chain crisis.According to the South China Morning Post, the global supply chain has taken massive strain since thestart of the pandemic, which continues to affect the flow of goods from China and has led to risingshipment costs.Despite the increase in retail figures, a shortage of various items such as chemicals, microchips and paintneeded to manufacture and produce finished goods has increased production costs."Shipments were delayed by a month and prices are higher than before," said We Zhishan, a storemanager at Yiwu International Trade Market."Containers are up to US$630 more expensive, depending on regions and countries," he said.A report by the New York Times explained that scarcity has caused the spike in prices, which beganwhen manufacturing companies were forced to shut down or reduce production due to strict lockdownmeasures."In response, shipping companies cut their schedules in anticipation of a drop in demand for movinggoods around the world," read the report. "In response, shipping companies cut their schedules in anticipation of a drop in demand for movinggoods around the world," read the report.Meanwhile, people around the world prepared for the "new normal" by creating home offices and homegyms and purchasing items such as printers and gaming consoles, as well as paint and machinery forDIY projects.As many factories slowly reopened and began ramping up their production, the shortage in items neededto produce these goods created a backlog as demand continued to rise.At the same time, those products which had been finished and sent for delivery to their respectivecountries and regions could not be delivered due to a shortage of containers, and they piled up inwarehouses across Asia.The delivery of masks and protective gear also became a priority, occupying the space in containers thatmade their way to every corner of the world.The ripple effect saw many companies placing larger orders due to shortages, resulting in one of thebiggest traffic jams on record.

Analyse which type of supplier relationship the South African organisation should engage with its Chinese supplier. Identify the type of supplier relationship and justify your choice with the support of theory and application to the scenario and practical case study provided. Show knowledge through application not just showing theory.

Analyse which type of supplier relationship the South African organisation should engage with its Chinese supplier. Identify the type of supplier relationship and justify your choice with the support of theory and application to the scenario and practical case study provided. Show knowledge through application not just showing theory.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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