Case Study Analysis Activity: Supplier Quality Issues$$

Objective: Students will analyze a case involving supplier quality issues and engage in a discussion about effective communication, contract management, and preventive measures in supply chain management.

Case Study: Supplier Quality Issues

Background: ABC Supplies is a company that specializes in providing construction materials to various contractors. Recently, they received a shipment of lumber from a new supplier, XYZ Lumber. Upon inspection, the warehouse staff discovered several issues:

Damaged Items: Approximately $20\%$ of the lumber was found to have visible damage $($e$.$g$.,$ warping and cracks$)$ that made it unsuitable for use in construction projects.

Discrepancies in Order Quantity: The shipment was supposed to contain $1000$ units of lumber, but only $900$ were delivered.

Incorrect Pricing: The invoice included a higher price per unit than what was agreed upon in the contract.

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$$Discussion Questions

What steps should the supplier take upon discovering the issues?$$

How can the supplier ensure better adherence to the contract in future transactions?$$

Discuss any preventive measures that could have been implemented.

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Use the discussion questions provided to guide your analysis and develop comprehensive strategies that can enhance supplier relationships and ensure quality in the receiving process.