Reference no: EM133968759

Question

For Derrick to fully understand how to concur the potential problem, he first needs to assess the problem. He needs to determine where in the supply chain network the problem stems from. Now is the time where he needs to collect all of the statistical data of all his suppliers. He has already noted that these suppliers offer low costs, but lack the quality they will need to be competitive within the market. Derrick could also look at other historical records such as time it takes for the product to be sent from the supplier. This will help Derrick for when he reaches out to other suppliers to determine the cost associated with this transition. Yes his companies products are going to go up in cost, but this could draw in other customers like himself who are animal and environmentally cautious. Before you start looking for new vendors, you first give the loyal ones an opportunity to grow with your company. Those suppliers could be looking to steer in that direction, but could be on the fence due to being afraid of losing business. You do not want to burn any bridges as you never know.