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Bob is a new procurement specialist at XYZ Ltd. He is assigned to categorise the company's sup-plies. After analysing, Bob realises that a group of low value products is sourced from a tiny geo-graphical area which is prone to flooding. What would be the best strategy to manage this category of products?
Suggested Answer: C
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The buying organisation is keen to encourage innovation so they should use the outcome or output based specification. In an outcome-based specification, umbrella statements like 'good quality', 'ambient temperature', 'convenient way' are often used. This may confuse the suppliers, and it's hard to check the solution that supplier offers. On the other hand, ouput-based specifications often include measurable requirements. For example, a specification for air conditioning system states that the system should maintain the room temperature at 19-24 degrees Celsius. Therefore, output specification is more appropriate in this case.
LO 3, AC 3.1
36 comments · newest first
SC
Scarlet
11 months ago
Assigning jobs to user departments? Not sure that's a good idea.
ER
Eric
11 months ago
Wait, is it really that prone to flooding?
TH
Theresia
12 months ago
Sourcing from one supplier sounds risky.
TA
Tarra
12 months ago
I think forming a partnership could work too.
NG
Nguyet
1 year ago
Definitely should find an alternative source!
TE
Temeka
1 year ago
Assigning procurement jobs to user departments sounds a bit risky. I think we should focus on securing supply first, right?
PA
Pamela
1 year ago
I feel like we practiced a similar question where sourcing from multiple suppliers was emphasized. So, option B might be the best strategy here.
AD
Adelaide
1 year ago
I'm not entirely sure, but I think forming a partnership with the current supplier could help mitigate risks too. Maybe option D?
ST
Stephaine
1 year ago
I remember we discussed the importance of diversifying suppliers in case of disruptions, so option B seems like a solid choice.
MA
Mariann
1 year ago
I'm a bit confused by the options presented. Assigning procurement to the user department doesn't seem directly relevant to the supply risk issue. I'll need to focus on the supplier management strategies and think through which one would be most effective.
AR
Arlie
1 year ago
Okay, I think the key here is to minimize the risk of supply disruptions from the flood-prone region. Finding an alternative source seems like the safest bet, even if it means a bit more work upfront. I'll make sure to explain my reasoning well.
RO
Rosendo
1 year ago
Hmm, I'm not sure about this one. Sourcing from a single supplier seems risky given the flooding issues, but I'm not sure if finding an alternative is the best approach either. I'll need to think through the pros and cons of each option carefully.
TO
Tony
1 year ago
This seems like a straightforward question about managing supply chain risk. I'd focus on evaluating the options to find an alternative source or build a stronger partnership with the current supplier.
KA
Karrie
1 year ago
This is a tricky one. There are a lot of audit types to keep track of. I'll have to eliminate the options that don't seem to fit the description and see what's left.
YO
Yolando
1 year ago
This seems straightforward, but I want to make sure I'm not missing anything. I'll read through the options closely.
JU
Jutta
1 year ago
Hmm, I'm a little confused about the details of the different financing plans and how they impact the capital structure. I'll need to carefully review the information in the passage to make sure I understand the key factors before attempting the calculation.
LE
Lemuel
1 year ago
I'm with Shawnda on this one. B is the way to go. Diversifying the supply source is crucial when dealing with high-risk geographical areas.
LI
Lizbeth
1 year ago
It's risky to rely on just one supplier from a flood-prone area.
LA
Lauran
1 year ago
I think finding an alternative source would be the best strategy.
AF
Afton
1 year ago
I agree with Shawnda, diversifying the supply source is important.
CO
Cory
2 years ago
Haha, I bet Malcolm is trying to get out of doing his job! C - Assign some of the procurement jobs to the user department sounds like a lazy solution to me.
YO
Yolando
1 year ago
D) Form partnership relationship with the current supplier
ST
Stanford
1 year ago
B) Find an alternative source to secure supply
JO
Joni
1 year ago
A) Source this group of products from only one supplier
MA
Malcolm
2 years ago
I'd go with D - Form a partnership relationship with the current supplier. That way, we can work together to improve the supply chain and minimize the impact of potential floods.
TA
Tamekia
1 year ago
True, having multiple options can help us mitigate risks and ensure a steady supply of products.
GO
Golda
1 year ago
We could also consider finding alternative sources as a backup plan in case of any disruptions.
EM
Emogene
2 years ago
I agree. It's important to have a strong relationship with our suppliers, especially in this situation.
LA
Lawana
2 years ago
That sounds like a good idea. Working closely with the supplier can help us come up with contingency plans.
SH
Shawnda
2 years ago
The best option here is B - Find an alternative source to secure supply. Relying on a single supplier from a flood-prone area is a huge risk that needs to be mitigated.
RE
Refugia
1 year ago
D) Form partnership relationship with the current supplier
EL
Elke
1 year ago
B) Find an alternative source to secure supply
MA
Marta
2 years ago
A) Source this group of products from only one supplier
SC
Scarlet
2 years ago
I disagree. Forming a partnership with the current supplier could help us manage the risk better.
DA
Daniel
2 years ago
I agree with Brynn. It's risky to rely on just one supplier from a flood-prone area.
BR
Brynn
2 years ago
I think we should find an alternative source to secure supply.