Which statement best describes the risks of buying in supply chain management?

Which statement best describes the risks of buying in supply chain management?

• A. Lower product quality, reliability problems, and predictability issues
• B. Increased control over processes
• C. Improved predictability and reliability
• D. Greater internal coordination costs

Answer: (A)

Buying from suppliers introduces external risks because you rely on third parties for quality, timeliness, and consistency. This makes three things likely to suffer: product quality can vary or be lower if the supplier’s processes aren’t as tightly controlled as your own; delivery reliability can worsen due to supplier capacity limits, disruptions, or quality fixes that trigger delays; and predictability can decline because lead times and shipment contents are less controllable, making planning, inventory, and service levels more uncertain. These risks are inherent to outsourcing and are the main reasons buyers worry about quality, reliability, and schedule consistency when sourcing externally.

Buying from suppliers introduces external risks because you rely on third parties for quality, timeliness, and consistency. This makes three things likely to suffer: product quality can vary or be lower if the supplier’s processes aren’t as tightly controlled as your own; delivery reliability can worsen due to supplier capacity limits, disruptions, or quality fixes that trigger delays; and predictability can decline because lead times and shipment contents are less controllable, making planning, inventory, and service levels more uncertain. These risks are inherent to outsourcing and are the main reasons buyers worry about quality, reliability, and schedule consistency when sourcing externally.