Discussion on Management of supplier

Management of supplier relation

I work as a manager who manages the supplier relations for a high-end bicycle manufacturer. I am having good relations with all the suppliers, but the current situations are tightening me around for a decision. Based on the orders of the new CEO, the new strategic decisions are made to discontinue a special like of bikes in the coming two months. The company is closing the production, but the Mexican supplier will suffer the most because he has been manufacturing special items for our company and his inventory is well maintained that he never deceived us due to shortfall of items. I am now supposed to make decisions that will neither damage the company reputation nor it will cause the issue to the Mexican supplier (Ratcliffe, 2016). I need important information before making the decision and this required information that I would request before decision are listed below,

1.      Complete information about the contract with Mexican supplier and when it will end. In case of any sudden decision from the company, who will be more beneficial and how the company will compensate for the loss of a supplier.

2.      Several items purchased in the previous year.

3.      New orders to purchase parts from his inventory if there was an order?

4.       Complete and authentic information about the produced parts in the inventory of Mexican supplier.

As I am not liable to open the decision of CEO of stopping the manufacturing of special items. I will prepare a fact sheet that will be based on the previous orders that were still in the process and cost of these items. The company, under the contracts with Mexican supplier, is legally and ethically liable to purchase the items or to pay for the products that were ordered for the coming months. The factors that affect my decision are listed below,

1.      Order of product

2.      Cost of production that was invested by the supplier

3.      Loss of supplier

4.      The company can pay the cost of products

Reference of Management of supplier relation

Ratcliffe, A. (2016). 'Secret' Giant is the world's biggest bicycle manufacturer and still growing. Retrieved from www.cips.org: https://www.cips.org/supply-management/news/2016/january/secret-giant-is-worlds-biggest-bicycle-manufacturer-and-still-growing/