Logistics and Supply Chain Management

Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENT
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
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1LOGISTICS AND SUPPLY CHAIN MANAGEMENT
CASE STUDY 1 - Tibo’s Supply Chain Practices
1. a) What are the benefits and costs of having new suppliers at Tibo?
The benefits of having new suppliers in Tibo are discussed below:
Increased Efficiency – A better and new established suppliers will be helping the
company by developing better supplier relationship and developing a better
communication. The company will gain a more and better understanding of the business.
It will lead the company by helping them to meet the needs more effectively.
Continual Improvement of operations – By choosing new suppliers Tibo will be able to
establish a long-term relationship between the suppliers and the buyers which will allow
the company to have a free flow of feedback and new ideas.
Various types of costs are associated with the implementation of the above benefits.
Therefore it can be recommended that a massive commitment is required by both the
company and the suppliers. For example if the company wants to receive benefits from
the suppliers then both Tibo’s product design management team and supplier’s
engineering team must be integrated into the decision making process. According to this
process will be quite costly for the company (Porter & Kramer 2019).
b) What steps would Chez and Terry have to take to ensure Tibo exercised due diligence
before contracting these two new international manufacturers?