Vincent is trying to analyze how important his suppliers are to his business.He wants to know which supplier is best for a long-term relationship.If he has to apply the supplier relationship management (SRM)strategy,Vincent should most likely begin the analysis by first:
A) conducting a life-cycle costing of all the capital equipment used by his business.
B) determining the competition for his business's vendors in the market.
C) determining the benchmarking standards of his business against other businesses in the market.
D) calculating how much amount is spent with each vendor and for which products.
E) conducting a bottom-up forecasting of his business's products.

Question

Quizplus · Accepted Answer

To determine which supplier is best for a long-term relationship through SRM, Vincent should first calculate how much amount is spent with each vendor and for which products. This will help him identify which suppliers are crucial to his business and prioritize them for long-term partnerships. Life-cycle costing, determining competition, benchmarking, and bottom-up forecasting may be useful in other aspects of strategic management, but they are not as relevant to SRM.

Vincent Is Trying to Analyze How Important His Suppliers Are