A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year. Which of the following sourcing strategies would be most appropriate?
A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year. Which of the following sourcing strategies would be most appropriate?
A manufacturer facing frequent changes in product technology and market preferences needs flexibility and adaptability in its sourcing strategy. Multiple sourcing is the most appropriate strategy in this context as it allows the manufacturer to work with various suppliers who might specialize in different technologies or niches. This approach minimizes the risk of supply disruptions, enables quicker adaptation to market changes, and enhances negotiation power.
Strategic partnering is going to share the same value and vision
With frequent changes in product technology and market preferences, having multiple sourcing options allows the manufacturer to have flexibility and agility in adapting to changes. It reduces the risk of relying solely on one supplier or sourcing option, which could lead to potential disruptions if changes occur rapidly. Multiple sourcing provides the manufacturer with more options, diversifies supply sources, and allows for better negotiation power in terms of pricing and terms.
In a situation where technology and market preferences are frequently changing, a more adaptable and flexible approach like Multiple Sourcing (B) can be more suitable. This strategy allows the manufacturer to work with multiple suppliers who may specialize in different technologies or market segments, enabling quicker responses to changes and reducing the risk of dependence on a single supplier.
why not multiple? if strategically partnering with one supplier who will not be able to deliver newest design, would that be riskier?
It is more difficult to adapt to changing needs when multiple suppliers are involved.