The primary issue faced by ABC, Inc.'s international sourcing team is the delay in processing contracts due to the need for multiple internal approvals from international suppliers and member firms. The best course of action should streamline the contract execution process, reducing the time taken for internal approvals and facilitating quicker commencement of services by suppliers.
Option A suggests allowing suppliers to start implementing services upon reaching an agreement in principle.
This can lead to legal and compliance issues if the formal contract does not reflect the agreed terms or if it is not finalized in time.
Option C proposes hiring additional staff, which could alleviate the workload but may not address the core issue of procedural delays. Additionally, it increases operational costs.
Option D recommends allowing member firms to execute contracts directly, which can lead to inconsistencies and a lack of centralized control over contracts, potentially resulting in quality and compliance issues.
Option B, subscribing to a digital signature service, directly addresses the delay issue by enabling faster execution of contracts through online approvals. Digital signatures are legally binding in many jurisdictions and can streamline the approval process significantly. This approach maintains the quality and consistency of the contracts while reducing the time required for execution.
References:
* Institute for Supply Management (ISM) guidelines on contract management.
* Research on the benefits of digital signature services in supply chain management.