When designing a sourcing strategy,it is important for a firm to
A)develop a process that will procure materials at the lowest possible cost.
B)maintain a record of all contracts,receipts,issues and other transactions in the event of lawsuits.
C)maximize the profitability of the distributors within the supply chain.
D)be clear on the factors that have the greatest influence on performance and target improvement on those areas.

Question

Quizplus · Accepted Answer

When designing a sourcing strategy, it is important to consider the factors that have the greatest influence on performance and target improvement on those areas. This helps to optimize the sourcing process and ensure that the firm is getting the best value for its money. Maintaining records is important, but it is not the primary consideration when designing a sourcing strategy. Similarly, while maximizing profitability for distributors can be beneficial, it should not be the sole focus of a sourcing strategy - the firm's own bottom line must also be considered. Finally, while cost is an important consideration in sourcing, it is not the only factor to take into account. Therefore, the best choice is D.

When Designing a Sourcing Strategy,it Is Important for a Firm