To explain: The idea of being a good customer and the reason a buying firm want to be perceived as a good customer by the supplier.
Case summary:
Person SD and Person DM are the procurement managers at Company
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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Purchasing and Supply Chain Management
- 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. Explain the role of performance measurement in managing supply chain activities.arrow_forwardAvion, 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?arrow_forwardWhich of the following issues are NOT related to buyer- supplier relations. Select one : a . Health and safety issues b . Developing open communication channels c . Treating suppliers fairly and with integrity d . Providing prompt payments on invoicesarrow_forward
- If Pick N Pay wants to establish itself as a leader in fresh goods, it needs to consider supplier performance metrics and analyse its suppliers accordingly. You are hired in the tomato sourcing team and are asked to discuss the evaluation of suppliers based primarily on QUALITY.1. Discuss what the quality metric entails.2. Thereafter discuss how it would be relevant to the context of your role at Pick N Pay’s tomato sourcingteam.3. Lastly, provide a referenced example of a supermarket evaluating its suppliers using supplierperformance metrics.(This portion of the question may be answered in relation to supplier performance metrics as a whole, not just“quality” as a supplier performance metric)arrow_forwardA business ethics case study. IKEA case: Company's fight to end child labor. Introduction, IKEA and Child Labor Accusations, Steps Taken to Address Child Labor in the Supply Chain Conclusion & Looking Ahead Questions: What does this case teach you about supply chain ethics? What are some of the ways in which management/leaders can ensure compliance of the standards set forth by a company in terms of supplier behavior and ethical sourcing? Who is primarily responsible for ensuring ethical behavior throughout the supply chain? Is it the company? The suppliers? Both? How can companies utilize the various platforms and technologies that exist today to better understand and oversee their supply chains? IKEA has taken numerous steps to address child labor in its supply chain. Do you think every business working in a context that may involve child labor has a duty to act in a similar way? Why or why not?arrow_forwardAs extracted from the case study, “the pandemic resulted in disrupted deliveries and many other supply chain management related issues, 93 percent of procurement and supply-chain leaders said they planned to increase the resilience of their supply chains, and 44 percent said they would be willing to give up some short-term efficiencies to achieve this —although this sort of trade-off can prove avoidable in some cases.” Considering this statement, evaluate the measures and strategies that the procurement function can employ to enhance supply chain resilience.arrow_forward
- How does a corruption scheme in procurement work? What are the goals of any procurement-related corruption strategy? What are the different strategies to prevent contact and procurement fraud by actively evaluating and estimating their risk exposure and their vulnerability to fraud?arrow_forwardRisk Management in Procurement Assignment 1. Identify critical components of the procurement cycle 2. List ways in which each component could be corrupted 3. Identify possible effects 4. Identify all possible causes 5. Assess the probability (a) of each corrupt practice occurring on a scale of 1 - 5 (1 = Low, 5 = High) 6. Determine the severity of the impact (b) on a scale of 1 - 5 (1 = Low, 5 = High) Risk Assessment 7. Identify the risk factor by multiplying a x b 8. Prioritize the risks 9. Identify corrective/preventive action to minimize the risk of corruption in the procurement cyclearrow_forwardTo formalize its dedication to sustainability in inventory sourcing, Gap monitors its inventory suppliers based on its own Code of Vendor Conduct (COVC), which uses a color-coded system to rate the quality of suppliers’ sustainability. What percentage of The Gap’s supplier facilities were rated as red in 2016? In 2019? Gap attempts to identify and resolve COVC issues of its suppliers. Issues include factors such as workers’ well-being, human rights violations, and negative environmental impact. If these issues cannot be resolved, Gap will create an exit plan to no longer use the supplier. How many open COVC issues did Gap have at the start of its fiscal year on February 1, 2019? Which country had the most open COVC issues?arrow_forward
- Answer the following question: 1. make an explanation on what you understand based on the Section III and Section VII of AMTMCC and explain it based on your understanding.arrow_forwardImagine that you are in charge of buying business supplies for of the following organizations:A luxury hotel Brainstorm a list of five items you would need to buy in large volumes. Determine how you would go about finding suppliers for these items. Be specific about your plans. Then develop a list of two or three criteria you would use to decide which supplier/source to purchase each item from. Write a post describing your business, products, suppliers, and criteria.arrow_forwardThe Ghana Ports and Harbors Authority has employed you as the new logistics and procurement Director. You are to give a briefing to management on five roles your department plays and at least five procurement and logistics strategies you seek to employ to enhance the competitiveness and world class business excellence of the Ports. Give an account of what you have to tell management.arrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning