emphasise on price alone will misdirect procurement manager to the point where they may endanger the survival of the business. Briefly discuss five reasons to support this statement 1 SEE ANSWER
Answers
Explanation:
Risk management
Risk is always a key concern for procurement, with the primary focus on suppliers’ financial status, followed by health and safety and industry practices. It’s no longer good enough to simply engage with your tier-one suppliers. Emphasis needs to be paid to controlling the approach taken with tier-two suppliers, ensuring that the necessary obligations are passed down to subcontractors.
2. Reputation and brand image
It’s not difficult to recall allegations of child labour in the overseas supply chain of certain retail brands, or issues around modern slavery both at home and abroad. The knock-on effect can be disruption to brand and public image and ultimately an impact on profitability. The Modern Slavery Act goes some way towards addressing this, but issues remain around compliance.