PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELGATE should
not be rendered accountable since the contents in this document only give learners a
kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENTS
Education is the most powerful weapon which you can use to change the world
, EXCELGATE INSTITUTE 0846244729
X
INTRODUCTION
This assignment addresses the supply chain challenges faced by Woolworths, as
highlighted in the case study. The questions focus on supplier strategy, demand
management, technology's role, omnichannel inventory management, and
sustainability. The answers are based on theoretical concepts from the prescribed
book and additional academic sources.
QUESTION 1: Argue whether Woolworths should use many suppliers or not.
Justify your argument.
According to Keller (2004), the issue of how many suppliers to use for every purchased
item is a complex one. While several references propose the use of single-source
procurement of core materials and supplies to facilitate cooperative buyer-supplier
partnerships, single sourcing can put the firm at very high risk. Theoretically speaking,
firms should resort to single or limited sourcing wherever feasible in order to build
strong associations with their truly best suppliers. However, on the contrary, the more
the firm relies on one supplier, the greater the risk that the failures of the supplier to
perform well could lead to either the shutdown of the plant or the production of inferior
quality finished products.
The case study mentions that Woolworths is facing shortages due to "supplier issues
and heavy rains". This situation suggests that Woolworths might benefit from
diversifying its supplier base. Relying on a limited number of suppliers can create
vulnerabilities in the supply chain, as evidenced by the current shortages experienced
by Woolworths when one or more suppliers face problems.
Woolworths should consider using multiple suppliers to mitigate risks associated with
supplier-related disruptions. Relying on a single supplier increases vulnerability to
issues such as production delays, quality problems, or external factors like weather
conditions, as seen in the case study. By diversifying its supplier base, Woolworths
can ensure a more stable supply of products, even if one supplier faces challenges.
3|Page
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELGATE should
not be rendered accountable since the contents in this document only give learners a
kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENTS
Education is the most powerful weapon which you can use to change the world
, EXCELGATE INSTITUTE 0846244729
X
INTRODUCTION
This assignment addresses the supply chain challenges faced by Woolworths, as
highlighted in the case study. The questions focus on supplier strategy, demand
management, technology's role, omnichannel inventory management, and
sustainability. The answers are based on theoretical concepts from the prescribed
book and additional academic sources.
QUESTION 1: Argue whether Woolworths should use many suppliers or not.
Justify your argument.
According to Keller (2004), the issue of how many suppliers to use for every purchased
item is a complex one. While several references propose the use of single-source
procurement of core materials and supplies to facilitate cooperative buyer-supplier
partnerships, single sourcing can put the firm at very high risk. Theoretically speaking,
firms should resort to single or limited sourcing wherever feasible in order to build
strong associations with their truly best suppliers. However, on the contrary, the more
the firm relies on one supplier, the greater the risk that the failures of the supplier to
perform well could lead to either the shutdown of the plant or the production of inferior
quality finished products.
The case study mentions that Woolworths is facing shortages due to "supplier issues
and heavy rains". This situation suggests that Woolworths might benefit from
diversifying its supplier base. Relying on a limited number of suppliers can create
vulnerabilities in the supply chain, as evidenced by the current shortages experienced
by Woolworths when one or more suppliers face problems.
Woolworths should consider using multiple suppliers to mitigate risks associated with
supplier-related disruptions. Relying on a single supplier increases vulnerability to
issues such as production delays, quality problems, or external factors like weather
conditions, as seen in the case study. By diversifying its supplier base, Woolworths
can ensure a more stable supply of products, even if one supplier faces challenges.
3|Page
