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ABC Inc. modifies a part in such a way that only one supplier is able to produce it. Which of the following if the BEST way for ABC to reduce the risk of supply chain interruption?A. Request that the supplier produce the part at more than one facility Submit quarterly orders with the suppliers to increase inventory C. Enter a long-term agreement with the supplier to ensure continuity of supply D. Revise the specification to allow for other sources of supply

Respuesta :

Enter into a long-term contract with the provider to guarantee supply continuity. This is option C for the correct response.

What is the importance of Continuity Of Supply ?

The ability to maintain an uninterrupted flow of goods and services from suppliers to customers within a suitable level and time frame in order to safeguard the organization's and interested parties' most crucial operations is known as supply chain continuity management.

The goal of supply chain continuity operations is to keep businesses running despite disruptions caused by natural disasters, economic downturns, pandemics, or other unforeseen events. By preventing or limiting interruptions, businesses can protect their reputations, financial performance, and even their very existence.

A company must have a plan for dealing with disasters and other interruptions, as well as the capacity to promptly implement that plan when necessary, in order to preserve supply chain continuity. This necessitates both the ability to promptly and efficiently manage such risks as well as a detailed examination of all sources of risk, including disruptions to raw material suppliers, transportation networks, and communication systems.

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