Final answer:
The decision by Sunnydale Corporation to increase purchases from small, women-owned suppliers is best described as inclusive procurement. Such strategies aim to include underrepresented groups in procurement opportunities, which can also support ethical sourcing and supplier diversification, potentially contributing to supply chain optimization in the long run.
Step-by-step explanation:
Understanding the Decision by Sunnydale Corporation
The purchasing managers at Sunnydale Corporation decide to intentionally increase purchases from small, women-owned suppliers. This decision primarily falls under inclusive procurement. Inclusive procurement strategies are meant to foster diversity within the supply chain by intentionally including underrepresented businesses in procurement decisions. These businesses can include, but are not limited to, those owned by women, minorities, veterans, and other historically underutilized or marginalized groups.
While the decision could also be seen as a form of ethical sourcing, which is focusing on the social impact and responsibility aspect of procurement, and supplier diversification, which improves supply chain resilience and market coverage, it does not necessarily result in supply chain optimization. Supply chain optimization usually refers to efforts made to enhance the efficiency and effectiveness of the supply process, often through cost reduction, speed enhancement, and minimizing disruptions.
However, it is important to note that, over time, inclusive procurement can lead to a more robust and resilient supply chain, which contributes to supply chain optimization. Additionally, firms have a profit incentive to embrace diversity as it can open up new markets, increase creativity and innovation, and improve the overall business performance.