What type of supplier is most appropriate for commodities that may create bottlenecks?
What type of supplier is most appropriate for commodities that may create bottlenecks?
For commodities that may create bottlenecks, a strategic supplier is the most appropriate. Strategic suppliers are those with whom a company builds a long-term relationship based on mutual trust and shared values. They are heavily involved in the planning and operational activities of the company, which allows for effective collaboration and risk management. By working closely with strategic suppliers, companies can ensure a reliable supply of critical commodities and proactively address potential bottlenecks to maintain smooth operations.
Strategic suppliers are those with whom a company builds a long-term relationship based on mutual trust and shared values.
This type of supplier has a long-term relationship with the company and is often involved in the company's planning activities. They would be the best choice for raw materials that can cause bottlenecks, as they can work together to plan and prevent these bottlenecks.
B: For commodities that may create bottlenecks, it's important to have suppliers who can reliably provide the necessary goods without causing disruptions. Category-preferred suppliers can offer competitive pricing, quality, and reliability without the need for the extensive collaboration and risk-sharing associated with strategic suppliers. Therefore, option B (Category-preferred supplier) is indeed a suitable choice for commodities where there are multiple suppliers available and the focus is on obtaining the best value without the need for a strategic alliance.