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Consolidating down to a single vendor

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Reference no: EM131357774

The following is an excerpt from an actual strategic plan (the company and product name have been changed to protect the innocent):

Acme's primary raw material is PVC sheet that is produced by three major vendors within the United States. Acme, a small consumer products manufacturer, is consolidating down to a single vendor. Continued growth by this vendor assures Acme that it will be able to meet its needs in the future.

Assume that Acme's chosen vendor will grow as forecast. Offer a scenario to Acme management that might convince them that they should rethink their decision to rely on a single vendor. What do you recommend Acme do to minimize the risk(s) that you have identified? Are there any drawbacks to your recommendation?

Reference no: EM131357774

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