Question

The Purchasing Policy Guidelines of the Southern Supply Inc. indicate that the company is committed to procuring its goods, products, and services from a diversified pool of vendors, contractors, and service providers. Despite these guidelines, Southern’s purchasing manager prefers to maintain a small cadre of suppliers that he knows and trusts.
How would you expect this situation to affect the assessment of Southern’s financial condition and performance?

Answer 1

Answer:

The-buying manager's-conduct should-be-relied upon to-expand Southern's-hazard by-expanding its-presentation to-potential-supply-deficiencies or-confounded conveyances

Trust in business is an incredibly dubious notion. It depends on the shared fulfillment of included gatherings, and the apparent life span of their relationship. There might be a clouded side to it - regarding "defilement/pay off", "preference", "nepotism" and so forth which may prompt "an underestimated, one-sided demeanor" and in the end bargain "quality" - antagonistically influencing the business' prosperity.  

Presently, given this thought, you may acknowledge why Southern Supply Inc. had a buying approach of acquiring its items/administrations from an expanded pool of specialist co-ops. It is actually as the mainstream saying goes - "One-ought not-put-every one of their-eggs-into-one-bin"