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8 page contingency plan and 1 page shareholder letter detailing the change from a primary vendor to an alternate vendor while maintaining the ethical principles and profits of a global manufacturing...

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ning the ethical principles and profits of a global manuf
_ vendor to an alternate vi
on pany.












ssment, choose either Option 1 or Option 2. You do not need to do both. You will apply on
nos in the Requirements below. Both options will be graded using the same scoring guide.

cturing's primary vendor factory has closed due to a black swan event and the vendor is not
to reopen and ship products for at least 6 months. You need to contact the alternative vendor and
\ your relationship with them, while maintaining the relationship with the primary vendor. It's
to keep your shareholders satisfied and remain profitable, so knowing that the alternative vendo
e guaranteed the same volume of orders as the primary vendor could increase your costs and
JV anufacturing's profit margin. The alternative vendor would like 3 commitment for a certain
ers and you must consider how that will be addressed without affecting the relationship. The
ndor has also hinted that they will offer you a
elationship permanent. This is not an uncommon practice in some countries, but it is illegal
of JM Manufacturing's ethics policy. You must also have an exit plan for terminating the
h the alternative vendor once the primary vendor is able to ship products again.



_
| Assessment 4 Instructions: Using X= =

pel 2du/webapps
lackboard/content/listContent jsp?course id =_ XXXXXXXXXX&content id=_ XXXXXXXXXX
~ Option 1
You are a supply chain manager with JM Manufacturing and you need to build a short-term business
elationship with the alternative vendor, while maintaining the relationship with the primary vendor as they
ecover from a natural disaster. You must have a plan to switch back to the primary supplier when thei
factory is functional and to communicate the state of JM Manufacturin
: g's vendor relationships and
\ profitability with shareholders.

Assessment 4 Instructions: Usine X |


urserooma.capella.edu/webapps
lackboard/content/listContent jsp?course id =_ XXXXXXXXXX&content id= XXXXXXXXXX
Wit
~ Requirements
Ai
Il
Include the following in your contingency plan:
» Articulate a plan to accelerate the relationship-building with an alternative vendor.
* Articulate relationship-building strategies with a primary vendor. What's best for maintaining this
elationship over the months that you will not be working together due to this natural disaster?
* Analyze how to maintain ethical principles and practices with supply chain partners. |
» Analyze strategies to obtain the best pricing from an alternative vendor. Analyze at least one tactic in |
great detail.
» Analyze the pros and cons of using multiple vendors at the same time for the selected company
scenario.
» Recommend how to transition back to the primary vendor. Will you still use only one vendor, or will you
use two to ensure your business flow is not inte
upted again? [3 |






Address the following in your shareholder letter: |
» What is the cu
ent state of the primary vendor?
» Why was the alternative vendor was selected? Be sure to deliver a message that focuses on the quality
of the alternative vendor.
How will profits remain strong for JM Manufacturing or your selected company?
. What is the transition plan to go back to the primary vendor or using a two vendor model?

















lan Requirements:
ntingency plan should be 7-8 pages, not including the title and reference page
a plan template of your choice. i
The shareholder letter should be 1 page.

ated company standards:

“The contingency plan and shareholder letter are professional documents and should therefore foll
the co
esponding MBA Academic and Professional Document Guidelines (available in the MBA
Program Resources).
se 5 scholarly or academic sources, where applicable, one of which must come from the Wall Stre



ournal.
Jse APA formatting for citations and olan
Answered 11 days After Apr 13, 2023

Solution

Deblina answered on Apr 25 2023
32 Votes
Coningency Plan & Shareholder Letter      2
CONINGENCY PLAN & SHAREHOLDER LETTER
Table of Contents
Overview of the Scenario    3
Purpose of the Contingency Plan    3
Contingency Plan    4
Accelerating the relationship with the Alternative vendor    4
Important Tactic    5
Relationship building strategies with the primary vendor:    6
Maintaining ethical principles and practices with the supply chain partners    7
Obtaining the best pricing from the alternative vendor    7
Advantages and disadvantages of using multiple Vendors    8
Recommendation: Transitioning Back to the Primary Vendor    8
Letter to Share Holders    9
References    11
Overview of the Scenario
As the representative of the JM manufacturing, it is important to prioritize the company's profitability and the satisfaction of the shareholders while maintaining the ethical business practices. In the situation where the primary vendor is closed down and not expected to re-open for at least 6 months it is crucial to quickly establish a relationship with the alternative vendor. However, it is important to make it clear to the alternative vendor that they will not be going to the same volume of orders as the primary vendor, which impacts the company's profit margin. When communicating with the alternative it is important to remain professional and transparent about the company's needs and limitations. It is important to emphasize that any commitments made to the alternative vendor will be contingent on the primary vendor's ability to Resume the normal operations. Regarding the alternative Vendors offer of an annual family vacation to Hawaii it is important to make it clear that search practices are illegal and company ethics policy but respectfully and the focus should be shifted back to the business relationship at hand. In order to ensure the smooth transmission back to the primary vendor once they are able to resume operations it is important to have an exclusive plan in place for terminating the relationship with the alternative vendor. This plan should strengthen the communication expectations for both parties.
Purpose of the Contingency Plan
As a supply manager with the manufacturing company, it is important to have contingency plans in place for the natural disasters and other unexpected events that may disrupt the supply chains. In the situation where the primary vendor is recovering from the natural disaster it may be necessary to build a short-term business relationship with an alternative wind. When building the relationship with the alternative it is important to communicate clearly that this is a temporary a
angement and that the company intends to switch back to the primary one once their factory is functional again (Zhang et al., 2020). The alternative vendor should be made aware of the timeline and expectations of both the parties during the temporary a
angement.
Contingency Plan
To build a short-term business relationship with the alternative vendor while maintaining the relationship with the primary vendor as the recover from the natural disaster it is effective to focus on the following aspects:
Accelerating the relationship with the Alternative vendo
This has to be initiated by identifying the alternative vendor’s strengths and weaknesses and effective assessment needs to be accomplished in order to understand the capability of the alternate vendor such as their production capacity and the quality standards along with the other aspects like customer service. review they are customer feedback and any industry ratings or certificates they may hold (Shea et al., 2022). Determine if their strengths align with the company's needs and if their weaknesses can be addressed or mitigated.
· Communicating early with the alternative vendor about the needs of the company and the limitations. discuss the effectiveness of the open communication and feedback from the alternative vendor to ensure alignment and mutual understanding. set up regular meetings or calls to review progress and address any issues or concerns (Lewandrowski et al., 2020).
· Establish clear timelines and expectations for both the parties during the temporary agreement: agree on specific timelines and milestones for the temporary a
angement such as when the orders will be placed and when daily bodies will be made and when payments will be made. Clearly communicate any changes to the timelines or expectations as they arise (Malone, 2019). Set up a tracking system to monitor progress and ensure that both parties are meeting their obligations.
· Evaluate the alternative vendor’s pricing structure and...
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