QUESTIONS 1- Critically examine the above assertion ? 2- Do you think this is a possible solution for the post Covid 19 era? If Yes or No, give adequate reason with practical examples.

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 1.7A: Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each...
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RISK IN INTERNATIONAL PROCUREMENT
READ THE FOLLOWING AND ANSWER ALL QUESTIONS.
The magnitude and the occurrence of risk internationally has pushed many companies to be
resilient or sustainable by identifying and evaluating the various sources of risk. Previous case
studies have talked about the challenge in purchasing of looking at both cost and other factors.
This raises its head again when we consider purchasing from the locale or region. These have
impacts on cost and other issues such as quality and delivery. As explained by one independent
nursing home in the South West, the impacts may vary depending on what commodities you
are purchasing. "We have very different ranges of procurement. Of these ranges, food
constitutes the largest element. We have a group catering manager who was a former senior
chef within our care facilities and she was promoted to this role to supervise the other chefs
and coordinate and oversee the food sourcing, and procurement." This use of a catering
manager to take on a significant buying role had a key challenge. "The purchasing went from
being outsourced through national providers to working with local suppliers. It was therefore
important that we also kept a rein on this progression to working with multiple suppliers. We
try and buy as locally and as fresh as possible now as our policy because in the past we had
used a purchasing agency approach which was fine but the national suppliers were not getting
a great quality, in spite of a good price. Local suppliers began to compete on a price level and
some of the chefs began to revert to locals for the quality and so we made it a policy to source
local. Also with the carbon reduction and decrease in pollution, it fits in superbly with our
company ethos."
QUESTIONS
1- Critically examine the above assertion ?
2- Do you think this is a possible solution for the post Covid 19 era? If Yes or No, give
adequate reason with practical examples.
Transcribed Image Text:RISK IN INTERNATIONAL PROCUREMENT READ THE FOLLOWING AND ANSWER ALL QUESTIONS. The magnitude and the occurrence of risk internationally has pushed many companies to be resilient or sustainable by identifying and evaluating the various sources of risk. Previous case studies have talked about the challenge in purchasing of looking at both cost and other factors. This raises its head again when we consider purchasing from the locale or region. These have impacts on cost and other issues such as quality and delivery. As explained by one independent nursing home in the South West, the impacts may vary depending on what commodities you are purchasing. "We have very different ranges of procurement. Of these ranges, food constitutes the largest element. We have a group catering manager who was a former senior chef within our care facilities and she was promoted to this role to supervise the other chefs and coordinate and oversee the food sourcing, and procurement." This use of a catering manager to take on a significant buying role had a key challenge. "The purchasing went from being outsourced through national providers to working with local suppliers. It was therefore important that we also kept a rein on this progression to working with multiple suppliers. We try and buy as locally and as fresh as possible now as our policy because in the past we had used a purchasing agency approach which was fine but the national suppliers were not getting a great quality, in spite of a good price. Local suppliers began to compete on a price level and some of the chefs began to revert to locals for the quality and so we made it a policy to source local. Also with the carbon reduction and decrease in pollution, it fits in superbly with our company ethos." QUESTIONS 1- Critically examine the above assertion ? 2- Do you think this is a possible solution for the post Covid 19 era? If Yes or No, give adequate reason with practical examples.
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