Question 5 (20 marks) The Chief Operations Officer of Super Cycles is considering her sourcing strategy. Four key outsou

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Question 5 20 Marks The Chief Operations Officer Of Super Cycles Is Considering Her Sourcing Strategy Four Key Outsou 1 (66.22 KiB) Viewed 20 times

Question 5 (20 marks) The Chief Operations Officer of Super Cycles is considering her sourcing strategy. Four key outsourced components are shown in the table below. Component Suppliers Ease of changing supplier Cost (as a proportion of total material cost) 3% The inner tubes Frame tubing 15% Carbon fibre 32% stem and bars Many alternative suppliers Very easy, could do it in days Only one supplier capable at Difficult in the short term, the moment Could take a possible in the longer long time to develop a new term supplier Relatively large number of Relatively easy. would available suppliers probably take a few weeks for new contract Few suppliers who are Complex to source, capable of manufacturing could switch supplier in these components to the longer term, but sufficient quality would pose quality risk 35% "Groupset gearing system Discuss the approaches to sourcing each of these components. In your discussion, you should forus on two key questions for each of the outsourced parts: what is the risk in the supply market, and what is the criticality of the product or service to the business?