A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?
A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?
A manufacturer having direct relationships with lower-tier suppliers helps in acquiring components with short lead times. This benefit enables the manufacturer to better manage inventory, reduce delays, and respond swiftly to production demands. While smaller lot sizes, Just in Time deliveries, and economic information can be beneficial, they are not as directly related to the strategic advantage of managing lead times across the supply chain.
Establishing direct relationships with lower-tier suppliers can give the manufacturer better visibility into the entire supply chain, including lead times for component parts. This can enable the manufacturer to better plan production schedules and respond to changes in demand. While the other options - providing smaller lot sizes, providing Just in Time deliveries, and providing information about impending shifts in the economy - may also have benefits in certain situations, they do not directly address the benefits of a direct relationship with lower-tier suppliers.
The sentence should have more clarity. Supplier sharing information of Economy of what ? global, country, self ?