Question

How would you respond to this post?

A firm should always have more than one supplier. I work in the aerospace industry. As such, there are many certifications and standards that each supplier must be and be held to. It is very difficult to attain these and therefore exiting a supplier is rigorous work. Making a good decision in the first place is the key. However, having too many suppliers can cause complications with delivery frequency, pricing, or quality (Vonderembse, & White, 2013). Variations in any of these can cause complications for a firm. If I were CEO of a company, I'd rather mitigate the risk of quality, pricing, natural disasters, or otherwise by having multiple suppliers than relying solely on only one or two and risking everything on their performance.

There are several parts that we are always waiting for from suppliers. Some of those have less than a 50% acceptance rate meaning that less than half of the ones the supplier sends us to meet our quality specs. We end up doing rework in house to try and salvage as many parts as we can due to the processing time and cost to qualify new suppliers. There are also situations where parts are designed for certain operations to be done in house and others, outsourced. As a general rule of thumb, though, I think every firm should have multiple suppliers.

Answer 1

A Thumbs Up! Would be really helpful for me. If you have any questions, please leave a comment and I will get back to you as soon as possible.

As my response to this post, If I am as CEO of the aerospace industry, there are many standards of products that qualify for the security and safety of passengers and goods and no tolerance allowed in aerospace industry material. And their many standards and certification required to be held to suppliers.

And it is difficult to meet all the standards for every product by single suppliers all time only 50% product is passed from standards. Making a good decision is the first place is the key so many suppliers are required. From many suppliers, There is a problem of complication with delivery frequencies, pricing, or quality that variations can affect the decision making and make complications for the firm. In the aerospace industry, many types of parts are needed and they waiting for from suppliers, almost of those have less than a 50% acceptance rate product to meet our quality. So there rework required to minimize the processing time and cosy of quality from new suppliers. In aerospace their product required which can survive in difficult weather conditions, loads, stresses, impacts, and from natural disasters. For meeting these functions and standards according to general thumb rule which noticed that decision which is made by the director based on past data experience, I think after reading that phrase multiple suppliers are required for every firm because it provides many benefits such as Promote innovation, provides multiple channels for goods and services, drives up the competition, down prices, allows accessing the whole different network.