A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?
A.
Provides smaller lot sizes
B.
Provides components with short lead times
C.
Provides Just in Time deliveries
D.
Provides information about impending shifts in the economy
Establishing direct relationships with lower-tier suppliers allows a manufacturer to gain critical insights and information that may not be available through tier 1 suppliers alone. Lower-tier suppliers often have a closer connection to the raw materials market and can provide early warnings about impending shifts in the economy, such as changes in raw material availability, price fluctuations, and other economic indicators. This information is invaluable for strategic planning and risk management. Options like smaller lot sizes, short lead times, and Just in Time (JIT) deliveries are operational benefits that typically arise from the tier 1 supplier relationships.
References:
Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit