A food manufacturer is sourcing recyclable packaging for a new chilled product. Supplier 1 offers the lowest unit price, but may cause stoppages on the filling line. Supplier 2 performs well on the filling line but weakens the product’s sustainability claim. Supplier 3 supports the sustainability claim and performs acceptably, but has a higher price and longer implementation lead time. Production, marketing and finance are each pushing for a different supplier based on their own priorities. Based on the scenario, which action should procurement take before making the award recommendation?

Question

Answer

Select Supplier 2 because stable filling-line performance protects production continuity and should override the other functional preferences.

Answer

Use the category team to evaluate the suppliers against agreed criteria covering cost, technical performance, sustainability fit and implementation risk.

Answer

Select Supplier 1 because the lowest unit price protects the launch margin and gives procurement an objective basis for the award.

Answer

Allow each function to negotiate with its preferred supplier, and then ask procurement to consolidate the best terms into the final contract.

Crowdly

A food manufacturer is sourcing recyclable packaging for a new chilled product. ...

Want instant access to all verified answers on cems.myexams.unisa.ac.za?