The easiness in switching suppliers for a company and the things that could complicate the ability of the firm to switch the suppliers. Case summary: Person SD and Person DM are the procurement managers at Company AI . They sat with each other and were reviewing the poor performance report from a key supplier Company FT. The report was directed towards the deteriorating quality of Company FT on the quality of material and on-time delivery. Material quality and on-time delivery: The quality of the materials plays an important role in the success of an organization. The quality of the materials plays a vital role in product quality. The on-time delivery of products is the delivery of products at the right time which makes it important for an organization to be competitive.

Question

Broll is a world class manufacturer and supplier of steel, tube, pipes and associated value adding products and services. Broll has been experiencing problems with it's supplier who have been failing to meet the lead time as per the contract resulting to contractual disputes. Assume the role of the procurement executives, explain how the company can adopt the contingency plan as a way of mitigating or managing the risk they are experiencing

Answer 1

Question

Chapter C, Problem 1.3A

Summary Introduction

To explain: The easiness in switching suppliers for a company and the things that could complicate the ability of the firm to switch the suppliers.

Case summary:

Person SD and Person DM are the procurement managers at Company AI. They sat with each other and were reviewing the poor performance report from a key supplier Company FT. The report was directed towards the deteriorating quality of Company FT on the quality of material and on-time delivery.

Material quality and on-time delivery:

The quality of the materials plays an important role in the success of an organization. The quality of the materials plays a vital role in product quality. The on-time delivery of products is the delivery of products at the right time which makes it important for an organization to be competitive.

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