A company that sells engineered-to-order products is planning implementation of a supplier relationship management system (SRM) for direct materials. Which of the following factors is most likely to make the implementation difficult?
A company that sells engineered-to-order products is planning implementation of a supplier relationship management system (SRM) for direct materials. Which of the following factors is most likely to make the implementation difficult?
A company that sells engineered-to-order products deals with unique specifications, materials, and components for each order, making the purchasing process inherently more complex than standard products. This complexity translates into a more challenging configuration, integration, and implementation of a supplier relationship management system (SRM). These issues are more pronounced in engineered-to-order scenarios than challenges like software upgrade costs, variable lead times, or supplier resistance, which, while significant, do not fundamentally alter the purchasing process's complexity to the same degree.
C is correct as in ETO, management of different materials with different lead times is the main challenge.
shouldnt this be D?
C is correct
Can someone explain me why is it A ?
Engineered-to-order products often require unique specifications, materials, and components, making the purchasing process more complicated than for standard products. This complexity can make it challenging to configure and integrate the SRM system with existing processes, leading to potential difficulties during implementation. Other factors such as cost of software upgrades, management of variable lead times, and resistance of material suppliers can also pose challenges but are less likely to be the primary difficulty in this scenario.