CORe Exam Dumps | A company's major supplier of sub-assemblies provides excellent quality and reasonable costs. However,

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HBX.CORE.v2024-09-27.q132
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Question 132/132

A company's major supplier of sub-assemblies provides excellent quality and reasonable costs. However, shipping delays and damage in transit make this supplier less reliable than desired. The supply manager would like to retain this supplier if possible, but is concerned about the reliability issues. Given this situation, which of the following is the BEST course of action for the supply manager to take?

A. Negotiate lower prices to compensate for the impact of delivery problems

B. Collaborate with the supplier to improve its outbound logistics

C. Increase forecasting lead times and safety stock for the supplier's products

D. Give the supplier a deadline by which to remedy unsatisfactory performance

Correct Answer: B

The best course of action is to collaborate with the supplier to improve its outbound logistics. This approach addresses the root cause of the reliability issue-shipping delays and damage in transit. Working closely with the supplier can lead to process improvements, better packaging solutions, and enhanced logistics practices.
This collaboration can help maintain the supplier relationship while improving reliability and ensuring a consistent supply of sub-assemblies.
References
* Supplier Relationship Management (SRM) principles
* Lean Supply Chain and Logistics Management by Paul Myerson
* Case studies from the Council of Supply Chain Management Professionals (CSCMP)

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