Trends in supply management include:
A)switching suppliers frequently through online auctions to get price discounts.
B)limiting the number of suppliers and focusing on results from key suppliers.
C)increasing the number of suppliers and developing closer relationships.
D)negotiating shorter term contracts with fewer suppliers to increase leverage.
E)greater concentration of the supplier selection decision in procurement.

Question

Quizplus · Accepted Answer

Limiting the number of suppliers and focusing on results from key suppliers is a trend in supply management known as supplier rationalization. This approach involves developing long-term relationships with a smaller number of suppliers to increase efficiency and value while also reducing risk. Switching suppliers frequently through online auctions (option A) may result in lower prices, but it can also lead to quality and delivery issues. Increasing the number of suppliers and developing closer relationships (option C) can increase competition and innovation, but it can also add complexity and cost. Negotiating shorter term contracts with fewer suppliers (option D) can limit risk but may also reduce bargaining power and limit opportunities for collaboration. The greater concentration of the supplier selection decision in procurement (option E) may improve decision-making efficiency, but it can also limit input from other stakeholders and reduce overall organizational alignment.

Trends in Supply Management Include