Give an example of a situation where one supplier has a greater impact on a firm's final product quality than another supplier. Be sure to explain why one supplier has a greater impact than the other.
(purchasing & supply management course)
When a supplier provides a component or input that drives the
core abilities of the final product, in comparison to the other
suppliers providing non-core components or inputs, then the
supplier providing a core item or component will have a bigger
impact upon the quality of the product. For example, a processor
and its type, capabilities drive the power of the computer system
and quality is identified with the system. If a system uses Intel
Core i7 of the latest generation and another system uses the
Celeron processor with other components remain same, then computer
system with i7 processor, will deliver superior capabilities and it
is due to the reason that providers of the core component affects
more of the quality of the final product.
Here, one supplier has the greater impact, because it delivers the
core part of the product that defines the quality. Other suppliers
are providing components, but of non-core nature and people don’t
buy the product on the basis of peripherals.
Give an example of a situation where one supplier has a greater impact on a firm's...
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