Stainless steel is an important raw material for an appliance company.Steel accounts for a high level of spend and is critical to customer satisfaction.Further, only three suppliers worldwide can produce steel to meet the company's quality standards.Which is appropriate in this situation?
A)Using electronic catalogs for steel.
B)Finding substitute materials.
C)Use competition to select suppliers.
D)Build collaborative partnerships with suppliers.

Question

Quizplus · Accepted Answer

Building collaborative partnerships with suppliers is the best choice in this situation. The company's high level of spend and criticality of steel to customer satisfaction make collaboration a more attractive option than simple competition or finding substitutes. Additionally, the fact that only three suppliers worldwide can produce steel to meet the company's quality standards means that partnering with these suppliers is likely to be the most effective way to ensure that the company's needs are met.

Stainless Steel Is an Important Raw Material for an Appliance