A company closely monitors supplier performance and notices recent late deliveries from one supplier. The supplier discloses flood damage at the plant. The company quickly shifts sourcing to a new supplier and has minimal loss of sales. Which of the following risk strategies reflects the company's actions?
The company's actions reflect reducing supply chain vulnerability. By quickly shifting sourcing to a new supplier after noticing late deliveries due to flood damage, the company minimized disruption and potential loss of sales. This proactive adjustment demonstrates a strategy focused on identifying and mitigating risks to maintain supply chain continuity.
Why not C?
I think C should be correct
Companies that respond successfully to unpredicted disruption will reinforce their competitive advantage and gain market share. They can increase their resilience by building in redundancy or flexibility. Redundancy can also be created by establishing safety stock, using multiple suppliers (even when more expensive), and intentionally setting low capacity utilization rates.
I also think it's C CCC