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_forwardIn order to assess a suppliers’ pool, you decide to evaluate the following categories of the suppliers’ performance using cost-ratio method:- Price- Delivery- Quality Using cost ratio method, please calculate the Suppliers performance score.arrow_forward
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- “Sourcing – So where does Starbucks coffee come from? Starbucks sources its coffee beans directly from nearly 30,000 coffee farms around the world, in countries such as Brazil, Columbia, Guatemala, Kenya, Mexico, Saudi Arabia, and Tanzania. Starbucks suppliers are carefully selected by following Starbucks’ own Coffee and Farmer Equity (CAFE) standards and Coffee Sourcing Guidelines (CSG). Each Starbucks supplier needs to meet these standards and requirements. According to Starbucks, the farms must have safe working conditions and not use forced or child labour.” Source: https://www.dynamicinventory.net/starbucks-supply-chain-management/ Based on the above statement, it shows that managing sourcing is very important in supply chain management. i. In your opinion, what factors that Starbuck considered when making sourcing decisions?ii. Discuss some ways that firm such as Starbuck benefits from good sourcing decision.arrow_forwardHow 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_forward
- To 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_forwardAnswer 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_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning