Roslyn is a senior manager for an international chain of fitness centers. Two suppliers provide exercise machines for her company. Which of the following is the wisest advice on how Roslyn should manage her suppliers?
A Keep the relationships as they are and focus on other matters, since suppliers are not essential to this type of organization.
B Seek out potential new suppliers who can meet or exceed the quality standards of existing suppliers.
C Eliminate one of the suppliers based on the quality of machinery and speed of shipping.
D Eliminate one of the suppliers based on the lowest total price for each machine.
The correct answer and explanation is:
The correct answer is B: Seek out potential new suppliers who can meet or exceed the quality standards of existing suppliers.
Explanation: Managing suppliers effectively is crucial for ensuring that an organization can maintain operational efficiency, especially in a business like a fitness center chain where the quality and reliability of equipment directly impact the experience of customers and the business’s long-term success. In this context, Roslyn should aim to build strong, competitive supplier relationships that offer more than just a good price.
By seeking out new suppliers who can meet or even exceed the quality standards of existing suppliers, Roslyn can improve her company’s competitive edge. This approach not only gives her more options in terms of cost and availability, but it also provides a buffer against potential disruptions in supply or quality issues. Having multiple suppliers who can meet high standards ensures that the fitness centers are never at risk of subpar equipment affecting their operations. Moreover, building a diversified supplier base can lead to better negotiations, more favorable terms, and stronger strategic partnerships in the long run.
The alternative options are less effective for the following reasons:
- Option A (Keep relationships as they are): This is a passive approach that does not address the potential for improvement in cost, quality, or service. If the current suppliers are not pushing to innovate or offer better terms, Roslyn could miss out on opportunities for growth.
- Option C (Eliminate one supplier based on quality and shipping): While quality and shipping speed are important, eliminating a supplier without a broader evaluation of new potential suppliers could leave the business without flexibility.
- Option D (Eliminate based on the lowest price): Choosing suppliers purely on price without considering long-term value, including quality and reliability, could lead to higher costs in repairs, maintenance, and customer dissatisfaction if the machinery is substandard.
In conclusion, B provides a proactive strategy that balances quality, cost, and supplier reliability for the business’s success.