Which one of the following management policies can damage supply chain performance?

Question

Quizplus · Accepted Answer

All of the above management policies can damage supply chain performance.

- Silo thinking refers to the attitude of certain departments within a company that only focus on their own objectives and goals, rather than collaborating with other departments to achieve overall organizational goals. This can lead to a lack of communication and cooperation in the supply chain, hindering its overall performance.

- Paying off suppliers too early or too late can also damage supply chain performance. If suppliers are not paid on time, they may be less willing to work with the company in the future or may prioritize working with other clients who pay on time. On the other hand, if suppliers are paid too early, the company may be missing out on opportunities to negotiate better payment terms or discounts.

- Finally, supply chain "savings" may not be reflected appropriately with financial P&L statements. If cost savings are achieved through cutting corners with suppliers, such as requesting lower quality materials or not properly compensating for additional work, companies may ultimately face increased costs down the line in the form of defective products, recalls, or lost business. Therefore, it is important to ensure that cost savings are achieved through sustainable and ethical practices that prioritize long-term supply chain performance.

Which One of the Following Management Policies Can Damage Supply