BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681
BuyFind

Purchasing and Supply Chain Manage...

6th Edition
Robert M. Monczka + 3 others
Publisher: Cengage Learning
ISBN: 9781285869681

Solutions

Chapter 3, Problem 1DQ
Textbook Problem

Write a brief policy statement that presents a position on the need for utilizing more diverse suppliers. What are the features or characteristics that your policy statement should have?

Expert Solution
Summary Introduction

To write: A policy statement that represents the position on the need for utilizing more diverse suppliers and the characteristics of the policy statement.

Introduction: Policy statement is a set of methods or behaviors that are accepted in an organization. It would provide a guideline to the employees on the things to do in an organization for a specific purpose, which would stabilize the conduct of every employee.

Explanation of Solution

Write a policy statement that represents the position on the need for utilizing more diverse suppliers:

Mostly, the organizations would prefer to purchase materials from diverse suppliers. Certain issues can be solved by purchasing materials from diverse suppliers. Here, the problem includes the bargaining power of the firm. Purchasing materials from a single supplier would reduce the power of bargaining.

In such cases, employees in an organization might shift to the supplier company. At that time, the suppliers might be able to gather the confidential strategies of an organization. Irregular supplies can also be reduced. Hence, it is recommended to use a more diverse supplier. These are the statements that would represent the importance of using more diverse suppliers.

Determine the feature or characteristics of the policy statement:

  • The policy statement must provide guidance to employees.
  • It should contain the instructions that help to make a decision.
  • It should be consistent and have maximum opportunities.

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