Question

Some firms delegate their purchasing tasks to outside vendors as a result of downsizing. These service vendors are known as

A) Procurement Consultants
B) Purchasing Agents
C) Supply Chain Intermediaries
D) Outsourcing Providers

Answer 1

These service vendors are known asOutsourcing Providers. The correct option is D) Outsourcing Providers.

Step-by-step explanation:

Outsourcing Providers, denoted by option D, refers to service vendors to whom firms delegate their purchasing tasks due to downsizing. In the context of business operations, outsourcing involves contracting out certain functions to external entities. Downsizing often prompts companies to streamline their internal operations, leading them to seek external partners for specific tasks. Outsourcing Providers, in this scenario, specialize in handling the purchasing responsibilities on behalf of the downsized firms.

These service vendors play a crucial role in managing the procurement process efficiently. They leverage their expertise and resources to ensure a seamless and cost-effective supply chain. By delegating purchasing tasks to Outsourcing Providers, downsized firms can focus on their core competencies while still maintaining control over the procurement process.

This strategic approach allows companies to adapt to changes in their organizational structure while optimizing efficiency and maintaining a competitive edge in the market. The term "Outsourcing Providers" accurately captures the essence of these external entities that facilitate the procurement function for downsized firms.