Question

Supply Chain Risk An electronics manufacturer produces and sells computer laptops to many retailers across the region. Their purchasing department is evaluating a number of hard disk suppliers. They need to make a decision, in collaboration with their technical team, to choose a supplier that makes the best offer and fulfills the technical requirements and guardrails. The successful supplier must be able to support the business over the long term, must be a strategic fit, should have enough capacity for the current volume and potential growth, should pose no risk to the organization, and their offer must be financially feasible. You, as a Supply Chain Risk Management Expert, are required to advise the team that’s evaluating the suppliers on the potential risks and major considerations during the selection process. Use your experience and understanding of the material to write a recommendation highlighting the points that they should look at and flagging possible risks that should be evaluated. Hard disks are a critical component in the computer manufacturing, and any disruption in supply could be very detrimental to the company’s business.

Answer 1

When evaluating potential hard disk suppliers, the purchasing department should consider long-term support, strategic fit, capacity, minimal risk, and financial feasibility.

By conducting a comprehensive evaluation, they can mitigate risks and make an informed decision.

Step-by-step explanation:

As a Supply Chain Risk Management Expert ,evaluating the potential hard disk suppliers, it is important to ensure business continuity and success.

Here are the major points to look at and the potential risks that should be evaluated:

1. Long-term Support: Choose a supplier that can support the business over the long term, ensuring stability and availability of hard disks even in the face of market disruptions or changes in supplier policies.
2. Strategic Fit: Assess whether the supplier aligns with the company's strategic objectives and values. Compatibility in terms of quality, innovation, and sustainability can contribute to a long-lasting partnership.
3. Capacity: Evaluate whether the supplier has enough capacity to meet the current volume of hard disks required by the manufacturer and potential future growth. This ensures a reliable and scalable supply chain.
4. Minimal Risk: Conduct a thorough risk assessment of each potential supplier. Consider factors such as their financial stability, reputation, past performance, and their ability to comply with regulatory requirements and industry standards.
5. Financial Feasibility: Analyze the supplier's offer to determine if it aligns with the company's budgetary constraints and financial goals. Ensure that the pricing is reasonable, competitive, and reflects the value provided.

By carefully considering these factors and conducting a comprehensive evaluation, the purchasing department can mitigate potential risks and make an informed decision that supports the company's supply chain resilience and success.