A South African bus-body manufacturer currently buys seating frames, foam inserts, upholstery, and final assembly services from separate suppliers. Quality problems often arise at the interfaces between components, and engineering changes take too long to coordinate. The sourcing team is considering one supplier that can design, build, test, and deliver the complete seating system. Which benefit would most strongly justify the sourcing team's proposed change?

Question

Answer

It would transfer all quality accountability to the supplier while eliminating the buyer’s need to monitor performance.

Answer

It would guarantee lower unit prices because fewer suppliers always create stronger short-term price competition.

Answer

It would reduce coordination complexity by using a supplier capable of managing the complete system and related services.

Answer

It would remove supply disruption risk because one supplier is easier to control than several specialised suppliers.

Crowdly

A South African bus-body manufacturer currently buys seating frames, foam insert...

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