CORE Exam Dumps : Supply Management Core Exam

Understand the Acquisition Impact: Recognize the potential risks associated with Supplier A acquiring a smaller firm and possibly transferring contracts.

Protect Quality Standards: Ensuring that EFG's stringent quality requirements are met is crucial.

Consent of Assignment Clause: Adding this clause ensures that Supplier A cannot transfer the contract to another entity without EFG’s consent, maintaining control over the quality.

Negotiate Terms: Discuss and agree upon the specifics of this clause with Supplier A to safeguard EFG’s interests.

References

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management. Cengage Learning.

Gattorna, J. (2015). Dynamic Supply Chains: Delivering Value Through People. Pearson.

The most likely advantage of multiple sourcing is the ability to test new suppliers with little risk. By sourcing from multiple suppliers, the organization can evaluate the performance, quality, and reliability of new suppliers without fully committing to a single source. This approach mitigates the risk associated with dependency on one supplier and provides opportunities for better pricing, innovation, and risk management.

References

CIPS (Chartered Institute of Procurement & Supply). Multiple Sourcing Strategies.

ISM (Institute for Supply Management). Supplier Diversification and Risk Management.