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Question 162 - CSCP discussion

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A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year. Which of the following sourcing strategies would be most appropriate?

A.
Sole sourcing
Answers
A.
Sole sourcing
B.
Multiple sourcing
Answers
B.
Multiple sourcing
C.
Long-term contracting
Answers
C.
Long-term contracting
D.
Strategic partnering
Answers
D.
Strategic partnering
Suggested answer: D

Explanation:

Frequent Changes: Frequent changes in product technology and market preferences require a sourcing strategy that is flexible and can adapt quickly to new product introductions.

Strategic Partnering: Forming strategic partnerships with suppliers allows manufacturers to collaborate closely on innovation, new product development, and market responsiveness. These partnerships often involve joint planning, sharing of technological advancements, and faster adaptation to market changes.

Other Strategies:

Sole Sourcing: Risky due to dependency on a single supplier.

Multiple Sourcing: Provides flexibility but lacks the deep collaboration needed for frequent technological changes.

Long-Term Contracting: Typically suited for stable environments, not for frequent changes in technology and market preferences.

Lambert, D. M., & Cooper, M. C. (2000). Issues in Supply Chain Management. Industrial Marketing Management, 29(1), 65-83

asked 16/09/2024
Josh Davis
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