PQI Management of Suppliers Article Example | Topics and Well Written Essays - 250 words

PQI Management of Suppliers - Article Example Therefore, Tier 1 suppliers should maintain the relationship with PQI. Tier 2 suppliers have the capability to maintain stable supply in the region. It also has strong technical support, and production management ability. Due to this, PQI should continue working with Tier 2 to supply its products in the region. Tier 3 suppliers have low competitive prices, and less ability to produce quality products. PQI should issue warning to Tier 3 suppliers. If the numbers of local customers continue to reduce, PQI should cease working with Tier 3 suppliers and pursue new suppliers. It should share the assessment results because this will enable the suppliers to realize their weakness and improve. This will also enable PQI to keep close relationship with all the suppliers because it wants to take advantage of any technology that might arise. Further, it will be able to minimize on production costs. For instance, maintaining close working relationship with Tier 3 implied that production of die products by a skilled company would play a vital role in assisting PQI to bring new products to the market at a low production cost. 4- The purchasing manager has narrowed its choice of potential supplier for the rush order from the new customer to A, B, and C. If you were Wang, which supplier would you recommend that the purchasing manager place the order with? Explain