Question

In: Operations Management

One of the most important topics for Sourcing is the Supplier related Issues. Please write at...

One of the most important topics for Sourcing is the Supplier related Issues. Please write at least 3 paragraphs about the issue of Finding suppliers and how important is that for a business. Also, list some examples about some businesses.

Solutions

Expert Solution

In today's modern world the businesses have become more dependent on suppliers with the concept of outsourcing most of the supplies a business has also become vulnerable of supplier challenges. With the beginning of 20th century the concept of OEMs and core competency came in to the business world and businesses started taking make or buy decisions, this started proving to be more profitable for them as they were able to get the raw products on costs lower than they were able to produce thus they were able to divert their entire resources on their core competence resulting in better market share and more profits.

The issue in finding suppliers generally arise in the initial phase of procuring that particular material, the very problem arises about how to choose suppliers and which one to choose. This is a time taking process and entire management is involved in the decision making. The specifications are sent to suppliers and based on the quality, price, capacity of supplier and the delivery schedule the decisions are taken. Price remains just one factor and a balance is created among the reputation of supplier and the price we are getting from him.

It may be possible at times when we face a situation where a number of supplier are present for a single good and all hold the same type of image in the market, we then by gathering market intelligence on them decide which one will be better for our requirements. Not all the time the decisions are right and we might need to change the supplier in mid way.

Issues also arise in the departments or people involved in the supplier selection process the production department may ask for a more expensive and quality product and the finance department be show its constraints of funds for procurement of expensive items, this is the situation where the top management comes in and taking all factors into consideration decides what has to be done.

Suppliers are the backbone of any business, they provide you with the raw materilas and products based on which your products quality and brand image is dependant in the market. A minor mistake in selection of supplier may lead you in much bigger trouble and even the sustainability of your business may be in question.

For e.g. If you are a Cell phone manufacturing company and your supplier of LED screens stops sending you the supplies on time your entire production and marketing operations will be be hampered and probability is you will suffer huge losses because due to the shortage in the necessary part required for the manufacturing of Cell phone you will not be able to produce and workers will sit idle and also you will not be able to supply the required number of products to the market creating a negative image overall.

Another example is we have seen in recent times many automobile companies such as Ford, Maruti Suzuki of India and Toyota recalling number of products from market because of some issues in their vehicle, this all happened because the suppliers who delivered a certain part which was fitted into the vehicles were faulty and this added into the books of these companies as extra expenses.

Toyota a follower of JIT (Just in Time) inventory system once suffered huge losses due to a fire in one of its supplier’s plant and the supplier became unable to supply the parts to Toyota. Toyota was unable to manufacture one of its much liked SUVs and even the supply schedule to its dealers was hampered substantially.


Related Solutions

Sourcing has a very important role in the supply chain and one of the most important...
Sourcing has a very important role in the supply chain and one of the most important thing is the Supplier related Issues. Please write at least 3-5 paragraphs about selecting and evaluating suppliers, and how important is that for a business, and how it effect the business. Also, list some examples about some businesses.
Please write one-page long essay about any topics that is related to business ethics. Please write...
Please write one-page long essay about any topics that is related to business ethics. Please write your thought. Don't copy for Goole.
Pick one of these topics related to biology, animals, environmental issues, disease, exercise or nutrition, and...
Pick one of these topics related to biology, animals, environmental issues, disease, exercise or nutrition, and search the internet, finding an interesting website related to the topic. After looking over the websites, write a summary, 200-300 words, related to the topic.
This is related Sourcing and Supplier Relationships in Supply chain (1) Using suitable examples, distinguish between...
This is related Sourcing and Supplier Relationships in Supply chain (1) Using suitable examples, distinguish between “Strategic Items” and “Core Standard Items”. (2) Should a company develop partnership relationship with all its suppliers? Why or why not? (3) Is the “Diamond model” for supplier relationship superior to the “Bow-tie” model? Explain. (4) What do you understand by “Supplier development” and why is it important? (5) Clearly describe the benefits of centralizing procurement instead of decentralizing it.
One of the most important topics in our course, especially given the current political environment is...
One of the most important topics in our course, especially given the current political environment is free trade. Please post brief responses to the following in YOUR OWN words: 1. Why do businesses, most economists and policy makers support free trade in theory? 2. Provide arguments for and against the current President's opinion on free trade.
One of the most important topics in our course, especially given the current political environment is...
One of the most important topics in our course, especially given the current political environment is free trade. Please post brief responses to the following in YOUR OWN words: 1. Why do businesses, most economists and policy makers support free trade in theory? 2. Provide arguments for and against the current President's opinion on free trade.
What are the most important drivers (or factors) that motivate firms to engage in global sourcing?...
What are the most important drivers (or factors) that motivate firms to engage in global sourcing? Identify and discuss at least four drivers?
Please answer the question below in 175 words or more. One of the important topics we...
Please answer the question below in 175 words or more. One of the important topics we covered was Modigliani–Miller theorem, which basically means if there were no outside factors (like taxes, bankruptcy costs, agency costs, and the markets being totally efficient) that the value of the firm is not effected at all by how the firm is financed. If you had a choice, which way do you think is the best method to finance a company and why (could be...
One of the most important features of most prokaryotes is their cell wall. Please explain the...
One of the most important features of most prokaryotes is their cell wall. Please explain the structural and functional properties of the cell walls in gram-positive and gram-negative bacteria.?
Please choose ONE of the following topics and write a detailed response. Your response should be...
Please choose ONE of the following topics and write a detailed response. Your response should be at least 10 sentences long for full credit of 20 points.Points are deducted for late work. Option 1:    Anabolic steroids, despite not being addictive, were placed into Schedule III by the DEA. Research how this drug effects the nervous system. OR Option 2: Neuropathy affects a large number of people, especially diabetics. Research a drug treatment for neuropathy and give its proposed mechanism...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT