MGMT 444: Principles Of Supply Chain

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MGMT 444– Principles of Supply Chain Mgt
Assignment 2.2 - Discussion Questions
Jose (Joey) Santiago
Embry Riddle Aeronautical University

Why should an organization be concerned with supplier relationships? Organizations should be over concerned with supplier relationships because the right suppliers can provide longevity as well as financial gains. Suppliers provide several benefits and some examples are better product quality, a seamless flow of information and smooth transactions in the supply chain management process. This relationship gives a company a competitive advantage when maintaining current contracts as well as future business. If a company can go into a request for proposal with a sound third party or internal …show more content…

Sourcing is the many strategic activities beyond the purchase of materials and services; sourcing is all of the activities involved in managing the firms external resources. Strategic sourcing refers to the long-term goal and could be said to lay the value foundation. Strategic sourcing is typically involved in the early stages of product development and utilizes technology to assist with identifying, selecting and improving the environment as well as supplier relationships. It also has several objectives that cannot be overlooked. Some examples include growth, brand image, new products, and profitability. In other words, strategic sourcing influences purchasing decisions as well as the procurement …show more content…

Time Warner also encouraged their vendors to participate in ethical sourcing to eliminate any risk involving discrimination, child labor laws, involuntary labor, coercion, harassment, association, labor and compensation laws, environment, anti-piracy and health and safety.
What is supply base rationalization and what are its advantages and disadvantages? Supply base rationalization is taking out poor or marginally performing suppliers in order to give that business to the firms’ best suppliers. Rationalizing the supply base means utilizing both the right number of suppliers and the right suppliers. This requires companies to categorize their spending and identify current and potential suppliers for each category (Dominick, 2006). An advantage of rationalization is building trust and long-term relationships while getting the best product for the service being provided. A disadvantage is the time intensive and the cost associated to

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