Strategic Approaches in Supply Chain Management Ethics

CASE 1 DON’T SHOOT THE MESSENGER SUPPLY CHAIN MANAGEMENT SYED SAROASH AZEEM MGMT 355

1) If I was Jeff, I would have slightly adjusted my approach while contacting and speaking with the suppliers. I would have made sure that the prices I was being quoted initially were not inflated and I was getting the lowest price possible from the supplier. This would lower the chances of the company not meeting the budget target due to the high initial cost prices. I would also make sure the production process was not rushed, and that ample testing and prototyping was being done to make sure that no unforeseen issues would arise later near the final production process. This would ease the pressure off the suppliers and the other parties involved in the design and production process. I would also try to keep the communication between the parties limited so that there are not too many opinions and inputs being taken into consideration to make the process smoother and more focused. 2) The ethical issues with this scenario are that Jeff had to go back on his original agreement with the suppliers which he had worked on for quite a while to ensure a smooth production and manufacturing process, and the fact that Jeff only had 30 days to convince his suppliers to agree to provide concessions for the material. Another ethical issue is that the suppliers had already provided Jeff with cushioned prices which were far from what the suppliers had originally paid for the material, which meant that they were being greedy and asking for more money than they should have, which then pushed the general manager to ask for a further 5% reduction in prices. 3) In my opinion, the general manager was right in asking for further concessions in price due to the inflated prices that were quoted initially. The general manager found out later that the prices that the suppliers were quoting were cushioned and there was a lot more room to work with in terms of the margin the suppliers had kept for themselves while quoting the cost of the product to Jeff. However, asking for a further

5% reduction in price after the initial 10% reduction request was accepted was not the right thing to do since the suppliers have to keep some sort of margin for themselves while making supply deals as no business can survive on selling their product for their own cost price.

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CASE 1 SCM

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